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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
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| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
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☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company |
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Emerging growth company |
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| Item |
Description
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Page | ||||||
| PART I | ||||||||
| PART II | ||||||||
| PART III | ||||||||
| PART IV | ||||||||
| 16. | Form 10-K Summary | |||||||
| For the Years Ended December 31, | ||||||||||||||||||||
| Consumer Loan Assignment Volume | 2020 | 2019 | 2018 | |||||||||||||||||
|
Percentage of total unit volume with either FICO
®
scores below 650 or no FICO
®
scores
|
94.9 | % | 95.9 | % | 95.6 | % | ||||||||||||||
| Unit Volume | Dollar Volume (1) | |||||||||||||||||||||||||
| For the Years Ended December 31, | Portfolio Program | Purchase Program | Portfolio Program | Purchase Program | ||||||||||||||||||||||
| 2018 | 69.7 | % | 30.3 | % | 67.2 | % | 32.8 | % | ||||||||||||||||||
| 2019 | 67.2 | % | 32.8 | % | 64.3 | % | 35.7 | % | ||||||||||||||||||
| 2020 | 64.1 | % | 35.9 | % | 60.6 | % | 39.4 | % | ||||||||||||||||||
| For the Years Ended December 31, | ||||||||||||||||||||
| Percent of Total Revenue | 2020 | 2019 | 2018 | |||||||||||||||||
| Finance charges | 93.6 | % | 92.0 | % | 91.5 | % | ||||||||||||||
| Premiums earned | 3.4 | % | 3.4 | % | 3.6 | % | ||||||||||||||
| Other income | 3.0 | % | 4.6 | % | 4.9 | % | ||||||||||||||
| Total revenue | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| For the Years Ended December 31, | Dealer Enrollments | Active Dealers (1) | ||||||||||||
| 2018 | 4,671 | 12,528 | ||||||||||||
| 2019 | 4,482 | 13,399 | ||||||||||||
| 2020 | 3,413 | 12,690 | ||||||||||||
| For the Year Ended December 31, 2020 | |||||||||||||||||||||||
| (Dollars in millions) | Consumer Loan Assignments | Active Dealers (2) | |||||||||||||||||||||
| Dollar Volume (1) | % of Total | Number | % of Total | ||||||||||||||||||||
| Michigan | $ | 325.2 | 8.9 | % | 775 | 6.1 | % | ||||||||||||||||
| Ohio | 236.7 | 6.5 | % | 853 | 6.7 | % | |||||||||||||||||
| New York | 234.2 | 6.4 | % | 765 | 6.0 | % | |||||||||||||||||
| Texas | 215.9 | 5.9 | % | 927 | 7.3 | % | |||||||||||||||||
| Tennessee | 179.8 | 4.9 | % | 490 | 3.9 | % | |||||||||||||||||
| All other states | 2,449.4 | 67.4 | % | 8,880 | 70.0 | % | |||||||||||||||||
| Total | $ | 3,641.2 | 100.0 | % | 12,690 | 100.0 | % | ||||||||||||||||
| For the Year Ended December 31, 2019 | |||||||||||||||||||||||
| (Dollars in millions) | Consumer Loan Assignments | Active Dealers (2) | |||||||||||||||||||||
| Dollar Volume (1) | % of Total | Number | % of Total | ||||||||||||||||||||
| Michigan | $ | 359.9 | 9.5 | % | 838 | 6.3 | % | ||||||||||||||||
| Ohio | 265.2 | 7.0 | % | 898 | 6.7 | % | |||||||||||||||||
| New York | 245.6 | 6.5 | % | 778 | 5.8 | % | |||||||||||||||||
| Texas | 201.5 | 5.3 | % | 918 | 6.9 | % | |||||||||||||||||
| New Jersey | 188.7 | 5.0 | % | 363 | 2.7 | % | |||||||||||||||||
| All other states | 2,511.3 | 66.7 | % | 9,604 | 71.6 | % | |||||||||||||||||
| Total | $ | 3,772.2 | 100.0 | % | 13,399 | 100.0 | % | ||||||||||||||||
| For the Year Ended December 31, 2018 | |||||||||||||||||||||||
| (Dollars in millions) | Consumer Loan Assignments | Active Dealers (2) | |||||||||||||||||||||
| Dollar Volume (1) | % of Total | Number | % of Total | ||||||||||||||||||||
| Michigan | $ | 364.1 | 10.1 | % | 804 | 6.4 | % | ||||||||||||||||
| Ohio | 260.1 | 7.2 | % | 858 | 6.8 | % | |||||||||||||||||
| New York | 229.4 | 6.4 | % | 726 | 5.8 | % | |||||||||||||||||
| Texas | 196.7 | 5.5 | % | 847 | 6.8 | % | |||||||||||||||||
| Indiana | 167.4 | 4.7 | % | 428 | 3.4 | % | |||||||||||||||||
| All other states | 2,378.1 | 66.1 | % | 8,865 | 70.8 | % | |||||||||||||||||
| Total | $ | 3,595.8 | 100.0 | % | 12,528 | 100.0 | % | ||||||||||||||||
|
Number of Team Members
As of December 31, |
||||||||||||||||||||
| Operating Function | 2020 | 2019 | 2018 | |||||||||||||||||
| Originations | 536 | 577 | 584 | |||||||||||||||||
| Servicing | 925 | 812 | 884 | |||||||||||||||||
| Support | 572 | 627 | 572 | |||||||||||||||||
| Total | 2,033 | 2,016 | 2,040 | |||||||||||||||||
| Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||||
| October 1 through October 31, 2020 | — | $ | — | — | 3,059,556 | |||||||||||||||||||||
| November 1 through November 30, 2020 | 509,669 | 310.41 | 509,669 | 2,549,887 | ||||||||||||||||||||||
| December 1 through December 31, 2020 | 47,277 | 328.24 | 47,277 | 2,502,610 | ||||||||||||||||||||||
| 556,946 | $ | 311.92 | 556,946 | |||||||||||||||||||||||
| (Dollars in millions, except per share data) | Years Ended December 31, | |||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||
| Income Statement Data: | ||||||||||||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||||||||
| Finance charges | $ | 1,562.4 | $ | 1,369.4 | $ | 1,176.8 | $ | 1,011.5 | $ | 874.3 | ||||||||||||||||||||||
| Premiums earned | 57.3 | 51.0 | 46.6 | 41.1 | 43.0 | |||||||||||||||||||||||||||
| Other income | 49.6 | 68.6 | 62.4 | 57.4 | 51.9 | |||||||||||||||||||||||||||
| Total revenue | 1,669.3 | 1,489.0 | 1,285.8 | 1,110.0 | 969.2 | |||||||||||||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||||||||||
| Salaries and wages | 186.5 | 193.3 | 167.8 | 140.1 | 126.5 | |||||||||||||||||||||||||||
| General and administrative | 69.6 | 65.1 | 55.7 | 55.5 | 48.2 | |||||||||||||||||||||||||||
| Sales and marketing | 69.5 | 70.2 | 67.7 | 58.4 | 49.4 | |||||||||||||||||||||||||||
| Provision for credit losses | 556.9 | 76.4 | 56.9 | 129.3 | 90.2 | |||||||||||||||||||||||||||
| Interest | 192.0 | 196.2 | 156.6 | 120.2 | 97.7 | |||||||||||||||||||||||||||
| Provision for claims | 37.9 | 30.1 | 26.0 | 22.7 | 26.0 | |||||||||||||||||||||||||||
| Loss on extinguishment of debt | 7.4 | 1.8 | — | — | — | |||||||||||||||||||||||||||
| Total costs and expenses | 1,119.8 | 633.1 | 530.7 | 526.2 | 438.0 | |||||||||||||||||||||||||||
|
Income before provision for income taxes
|
549.5 | 855.9 | 755.1 | 583.8 | 531.2 | |||||||||||||||||||||||||||
| Provision for income taxes | 128.5 | 199.8 | 181.1 | 113.6 | 198.4 | |||||||||||||||||||||||||||
| Net income | $ | 421.0 | $ | 656.1 | $ | 574.0 | $ | 470.2 | $ | 332.8 | ||||||||||||||||||||||
| Net income per share: | ||||||||||||||||||||||||||||||||
| Basic | $ | 23.57 | $ | 34.71 | $ | 29.52 | $ | 24.12 | $ | 16.37 | ||||||||||||||||||||||
| Diluted | $ | 23.47 | $ | 34.57 | $ | 29.39 | $ | 24.04 | $ | 16.31 | ||||||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||
| Basic | 17,858,935 | 18,900,256 | 19,446,067 | 19,497,719 | 20,331,769 | |||||||||||||||||||||||||||
| Diluted | 17,935,779 | 18,976,560 | 19,532,312 | 19,558,936 | 20,410,116 | |||||||||||||||||||||||||||
| Balance Sheet Data: | ||||||||||||||||||||||||||||||||
| Loans receivable, net | $ | 6,787.9 | $ | 6,685.2 | $ | 5,763.3 | $ | 4,619.6 | $ | 3,886.6 | ||||||||||||||||||||||
| All other assets | 701.1 | 738.0 | 474.1 | 366.0 | 331.4 | |||||||||||||||||||||||||||
| Total assets | $ | 7,489.0 | $ | 7,423.2 | $ | 6,237.4 | $ | 4,985.6 | $ | 4,218.0 | ||||||||||||||||||||||
| Total debt | $ | 4,608.6 | $ | 4,538.8 | $ | 3,820.9 | $ | 3,070.8 | $ | 2,603.7 | ||||||||||||||||||||||
| Other liabilities | 577.9 | 529.1 | 425.6 | 379.0 | 440.6 | |||||||||||||||||||||||||||
| Total liabilities | 5,186.5 | 5,067.9 | 4,246.5 | 3,449.8 | 3,044.3 | |||||||||||||||||||||||||||
| Shareholders’ equity (1) | 2,302.5 | 2,355.3 | 1,990.9 | 1,535.8 | 1,173.7 | |||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 7,489.0 | $ | 7,423.2 | $ | 6,237.4 | $ | 4,985.6 | $ | 4,218.0 | ||||||||||||||||||||||
| Forecasted Collection Percentage as of (1) | Current Forecast Variance from | |||||||||||||||||||||||||||||||||||||||||||
| Consumer Loan Assignment Year | December 31, 2020 | December 31, 2019 | December 31, 2018 |
Initial
Forecast |
December 31, 2019 | December 31, 2018 |
Initial
Forecast |
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| 2011 | 74.8 | % | 74.8 | % | 74.7 | % | 72.5 | % | 0.0 | % | 0.1 | % | 2.3 | % | ||||||||||||||||||||||||||||||
| 2012 | 73.8 | % | 73.9 | % | 73.8 | % | 71.4 | % | -0.1 | % | 0.0 | % | 2.4 | % | ||||||||||||||||||||||||||||||
| 2013 | 73.4 | % | 73.5 | % | 73.5 | % | 72.0 | % | -0.1 | % | -0.1 | % | 1.4 | % | ||||||||||||||||||||||||||||||
| 2014 | 71.6 | % | 71.7 | % | 71.7 | % | 71.8 | % | -0.1 | % | -0.1 | % | -0.2 | % | ||||||||||||||||||||||||||||||
| 2015 | 65.2 | % | 65.4 | % | 65.4 | % | 67.7 | % | -0.2 | % | -0.2 | % | -2.5 | % | ||||||||||||||||||||||||||||||
| 2016 | 63.6 | % | 64.1 | % | 64.2 | % | 65.4 | % | -0.5 | % | -0.6 | % | -1.8 | % | ||||||||||||||||||||||||||||||
| 2017 | 64.1 | % | 64.8 | % | 65.5 | % | 64.0 | % | -0.7 | % | -1.4 | % | 0.1 | % | ||||||||||||||||||||||||||||||
| 2018 | 64.0 | % | 65.1 | % | 65.0 | % | 63.6 | % | -1.1 | % | -1.0 | % | 0.4 | % | ||||||||||||||||||||||||||||||
| 2019 | 64.4 | % | 64.6 | % | — | 64.0 | % | -0.2 | % | — | 0.4 | % | ||||||||||||||||||||||||||||||||
| 2020 | 64.8 | % | — | — | 63.4 | % | — | — | 1.4 | % | ||||||||||||||||||||||||||||||||||
| (In millions) | For the years ended December 31, | |||||||||||||||||||
| Increase (decrease) in forecasted net cash flows | 2020 | 2019 | 2018 | |||||||||||||||||
| Dealer Loans | $ | (41.1) | $ | (7.9) | $ | 2.0 | ||||||||||||||
| Purchased Loans | (5.2) | 22.5 | 40.3 | |||||||||||||||||
|
Total Loans
|
$ | (46.3) | $ | 14.6 | $ | 42.3 | ||||||||||||||
| Year over Year Percent Change | ||||||||||||||
| Three Months Ended | Front End Collections (1) | Total Collections | ||||||||||||
| March 31, 2020 | 8.8 | % | 9.1 | % | ||||||||||
| June 30, 2020 | 11.4 | % | 6.5 | % | ||||||||||
| September 30, 2020 | 15.6 | % | 11.3 | % | ||||||||||
| December 31, 2020 | 12.4 | % | 9.9 | % | ||||||||||
| Average | ||||||||||||||||||||
| Consumer Loan Assignment Year | Consumer Loan (1) | Advance (2) |
Initial Loan Term
(in months) |
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| 2011 | $ | 15,686 | $ | 7,137 | 46 | |||||||||||||||
| 2012 | 15,468 | 7,165 | 47 | |||||||||||||||||
| 2013 | 15,445 | 7,344 | 47 | |||||||||||||||||
| 2014 | 15,692 | 7,492 | 47 | |||||||||||||||||
| 2015 | 16,354 | 7,272 | 50 | |||||||||||||||||
| 2016 | 18,218 | 7,976 | 53 | |||||||||||||||||
| 2017 | 20,230 | 8,746 | 55 | |||||||||||||||||
| 2018 | 22,158 | 9,635 | 57 | |||||||||||||||||
| 2019 | 23,139 | 10,174 | 57 | |||||||||||||||||
| 2020 | 24,262 | 10,656 | 59 | |||||||||||||||||
| As of December 31, 2020 | ||||||||||||||||||||||||||
| Consumer Loan Assignment Year |
Forecasted
Collection % |
Advance % (1) | Spread % |
% of Forecast
Realized (2) |
||||||||||||||||||||||
| 2011 | 74.8 | % | 45.5 | % | 29.3 | % | 99.8 | % | ||||||||||||||||||
| 2012 | 73.8 | % | 46.3 | % | 27.5 | % | 99.7 | % | ||||||||||||||||||
| 2013 | 73.4 | % | 47.6 | % | 25.8 | % | 99.4 | % | ||||||||||||||||||
| 2014 | 71.6 | % | 47.7 | % | 23.9 | % | 98.9 | % | ||||||||||||||||||
| 2015 | 65.2 | % | 44.5 | % | 20.7 | % | 97.8 | % | ||||||||||||||||||
| 2016 | 63.6 | % | 43.8 | % | 19.8 | % | 93.8 | % | ||||||||||||||||||
| 2017 | 64.1 | % | 43.2 | % | 20.9 | % | 84.3 | % | ||||||||||||||||||
| 2018 | 64.0 | % | 43.5 | % | 20.5 | % | 67.8 | % | ||||||||||||||||||
| 2019 | 64.4 | % | 44.0 | % | 20.4 | % | 44.6 | % | ||||||||||||||||||
| 2020 | 64.8 | % | 43.9 | % | 20.9 | % | 15.7 | % | ||||||||||||||||||
| Dealer Loans | Purchased Loans | |||||||||||||||||||||||||||||||||||||
| Forecasted Collection Percentage as of (1) | Forecasted Collection Percentage as of (1) | |||||||||||||||||||||||||||||||||||||
| Consumer Loan Assignment Year | December 31, 2020 |
Initial
Forecast |
Variance | December 31, 2020 |
Initial
Forecast |
Variance | ||||||||||||||||||||||||||||||||
| 2011 | 74.6 | % | 72.4 | % | 2.2 | % | 76.4 | % | 72.7 | % | 3.7 | % | ||||||||||||||||||||||||||
| 2012 | 73.6 | % | 71.3 | % | 2.3 | % | 75.9 | % | 71.4 | % | 4.5 | % | ||||||||||||||||||||||||||
| 2013 | 73.4 | % | 72.1 | % | 1.3 | % | 74.3 | % | 71.6 | % | 2.7 | % | ||||||||||||||||||||||||||
| 2014 | 71.5 | % | 71.9 | % | -0.4 | % | 72.4 | % | 70.9 | % | 1.5 | % | ||||||||||||||||||||||||||
| 2015 | 64.5 | % | 67.5 | % | -3.0 | % | 68.8 | % | 68.5 | % | 0.3 | % | ||||||||||||||||||||||||||
| 2016 | 62.8 | % | 65.1 | % | -2.3 | % | 65.8 | % | 66.5 | % | -0.7 | % | ||||||||||||||||||||||||||
| 2017 | 63.4 | % | 63.8 | % | -0.4 | % | 65.6 | % | 64.6 | % | 1.0 | % | ||||||||||||||||||||||||||
| 2018 | 63.5 | % | 63.6 | % | -0.1 | % | 65.1 | % | 63.5 | % | 1.6 | % | ||||||||||||||||||||||||||
| 2019 | 64.1 | % | 63.9 | % | 0.2 | % | 65.1 | % | 64.2 | % | 0.9 | % | ||||||||||||||||||||||||||
| 2020 | 64.5 | % | 63.3 | % | 1.2 | % | 65.4 | % | 63.6 | % | 1.8 | % | ||||||||||||||||||||||||||
| Dealer Loans | Purchased Loans | |||||||||||||||||||||||||||||||||||||
| Consumer Loan Assignment Year | Forecasted Collection % (1) | Advance % (1)(2) | Spread % | Forecasted Collection % (1) | Advance % (1)(2) | Spread % | ||||||||||||||||||||||||||||||||
| 2011 | 74.6 | % | 45.1 | % | 29.5 | % | 76.4 | % | 49.3 | % | 27.1 | % | ||||||||||||||||||||||||||
| 2012 | 73.6 | % | 46.0 | % | 27.6 | % | 75.9 | % | 50.0 | % | 25.9 | % | ||||||||||||||||||||||||||
| 2013 | 73.4 | % | 47.2 | % | 26.2 | % | 74.3 | % | 51.5 | % | 22.8 | % | ||||||||||||||||||||||||||
| 2014 | 71.5 | % | 47.2 | % | 24.3 | % | 72.4 | % | 51.8 | % | 20.6 | % | ||||||||||||||||||||||||||
| 2015 | 64.5 | % | 43.4 | % | 21.1 | % | 68.8 | % | 50.2 | % | 18.6 | % | ||||||||||||||||||||||||||
| 2016 | 62.8 | % | 42.1 | % | 20.7 | % | 65.8 | % | 48.6 | % | 17.2 | % | ||||||||||||||||||||||||||
| 2017 | 63.4 | % | 42.1 | % | 21.3 | % | 65.6 | % | 45.8 | % | 19.8 | % | ||||||||||||||||||||||||||
| 2018 | 63.5 | % | 42.7 | % | 20.8 | % | 65.1 | % | 45.2 | % | 19.9 | % | ||||||||||||||||||||||||||
| 2019 | 64.1 | % | 43.1 | % | 21.0 | % | 65.1 | % | 45.6 | % | 19.5 | % | ||||||||||||||||||||||||||
| 2020 | 64.5 | % | 43.0 | % | 21.5 | % | 65.4 | % | 45.5 | % | 19.9 | % | ||||||||||||||||||||||||||
| Year over Year Percent Change | ||||||||||||||
| For the Year Ended December 31, | Unit Volume | Dollar Volume (1) | ||||||||||||
| 2018 | 13.6 | % | 25.2 | % | ||||||||||
| 2019 | -0.9 | % | 4.9 | % | ||||||||||
| 2020 | -7.5 | % | -3.5 | % | ||||||||||
| Year over Year Percent Change | ||||||||
| Three Months Ended | Unit Volume | |||||||
| March 31, 2020 | -10.1 | % | ||||||
| June 30, 2020 | 5.7 | % | ||||||
| September 30, 2020 | -8.8 | % | ||||||
| December 31, 2020 | -18.1 | % | ||||||
| For the Years Ended December 31, | For the Years Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | 2019 | 2018 | % Change | ||||||||||||||||||||||||||||||
| Consumer Loan unit volume | 341,967 | 369,805 | -7.5 | % | 369,805 | 373,329 | -0.9 | % | |||||||||||||||||||||||||||
| Active Dealers (1) | 12,690 | 13,399 | -5.3 | % | 13,399 | 12,528 | 7.0 | % | |||||||||||||||||||||||||||
| Average volume per active Dealer | 26.9 | 27.6 | -2.5 | % | 27.6 | 29.8 | -7.4 | % | |||||||||||||||||||||||||||
|
Consumer Loan unit volume from Dealers active both periods
|
309,179 | 338,939 | -8.8 | % | 322,665 | 343,091 | -6.0 | % | |||||||||||||||||||||||||||
| Dealers active both periods | 9,795 | 9,795 | — | 9,253 | 9,253 | — | |||||||||||||||||||||||||||||
|
Average volume per Dealer active both periods
|
31.6 | 34.6 | -8.8 | % | 34.9 | 37.1 | -6.0 | % | |||||||||||||||||||||||||||
|
Consumer Loan unit volume from Dealers
not
active both periods
|
32,788 | 30,866 | 6.2 | % | 47,140 | 30,238 | 55.9 | % | |||||||||||||||||||||||||||
|
Dealers
not
active both periods
|
2,895 | 3,604 | -19.7 | % | 4,146 | 3,275 | 26.6 | % | |||||||||||||||||||||||||||
|
Average volume per Dealer
not
active both periods
|
11.3 | 8.6 | 31.4 | % | 11.4 | 9.2 | 23.9 | % | |||||||||||||||||||||||||||
| For the Years Ended December 31, | For the Years Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | 2019 | 2018 | % Change | ||||||||||||||||||||||||||||||
|
Consumer Loan unit volume from new active Dealers
|
30,968 | 44,938 | -31.1 | % | 44,938 | 47,898 | -6.2 | % | |||||||||||||||||||||||||||
| New active Dealers (1) | 2,730 | 3,936 | -30.6 | % | 3,936 | 4,037 | -2.5 | % | |||||||||||||||||||||||||||
|
Average volume per new active Dealer
|
11.3 | 11.4 | -0.9 | % | 11.4 | 11.9 | -4.2 | % | |||||||||||||||||||||||||||
| Attrition (2) | -8.3 | % | -8.1 | % | -8.1 | % | -9.6 | % | |||||||||||||||||||||||||||
| Unit Volume | Dollar Volume (1) | |||||||||||||||||||||||||
| For the Years Ended December 31, | Portfolio Program | Purchase Program | Portfolio Program | Purchase Program | ||||||||||||||||||||||
| 2018 | 69.7 | % | 30.3 | % | 67.2 | % | 32.8 | % | ||||||||||||||||||
| 2019 | 67.2 | % | 32.8 | % | 64.3 | % | 35.7 | % | ||||||||||||||||||
| 2020 | 64.1 | % | 35.9 | % | 60.6 | % | 39.4 | % | ||||||||||||||||||
| (Dollars in millions, except per share data) | For the Years Ended December 31, | ||||||||||||||||||||||
| 2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Finance charges | $ | 1,562.4 | $ | 1,369.4 | $ | 193.0 | 14.1 | % | |||||||||||||||
| Premiums earned | 57.3 | 51.0 | 6.3 | 12.4 | % | ||||||||||||||||||
| Other income | 49.6 | 68.6 | (19.0) | -27.7 | % | ||||||||||||||||||
| Total revenue | 1,669.3 | 1,489.0 | 180.3 | 12.1 | % | ||||||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
| Salaries and wages (1) | 186.5 | 193.3 | (6.8) | -3.5 | % | ||||||||||||||||||
| General and administrative (1) | 69.6 | 65.1 | 4.5 | 6.9 | % | ||||||||||||||||||
| Sales and marketing (1) | 69.5 | 70.2 | (0.7) | -1.0 | % | ||||||||||||||||||
| Provision for credit losses | 556.9 | 76.4 | 480.5 | 628.9 | % | ||||||||||||||||||
| Interest | 192.0 | 196.2 | (4.2) | -2.1 | % | ||||||||||||||||||
| Provision for claims | 37.9 | 30.1 | 7.8 | 25.9 | % | ||||||||||||||||||
| Loss on extinguishment of debt | 7.4 | 1.8 | 5.6 | 311.1 | % | ||||||||||||||||||
| Total costs and expenses | 1,119.8 | 633.1 | 486.7 | 76.9 | % | ||||||||||||||||||
| Income before provision for income taxes | 549.5 | 855.9 | (306.4) | -35.8 | % | ||||||||||||||||||
| Provision for income taxes | 128.5 | 199.8 | (71.3) | -35.7 | % | ||||||||||||||||||
| Net income | $ | 421.0 | $ | 656.1 | $ | (235.1) | -35.8 | % | |||||||||||||||
| Net income per share: | |||||||||||||||||||||||
| Basic | $ | 23.57 | $ | 34.71 | $ | (11.14) | -32.1 | % | |||||||||||||||
| Diluted | $ | 23.47 | $ | 34.57 | $ | (11.10) | -32.1 | % | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 17,858,935 | 18,900,256 | (1,041,321) | -5.5 | % | ||||||||||||||||||
| Diluted | 17,935,779 | 18,976,560 | (1,040,781) | -5.5 | % | ||||||||||||||||||
| (1) Operating expenses | $ | 325.6 | $ | 328.6 | $ | (3.0) | -0.9 | % | |||||||||||||||
| (Dollars in millions) | For the Years Ended December 31, | ||||||||||||||||
| 2020 | 2019 | Change | |||||||||||||||
| Average net Loans receivable balance | $ | 6,753.5 | $ | 6,321.2 | $ | 432.3 | |||||||||||
| Average yield on our Loan portfolio | 23.1 | % | 21.7 | % | 1.4 | % | |||||||||||
|
(In millions)
Impact on finance charges:
|
For the Year Ended December 31, 2020 | |||||||
| Due to an increase in the average net Loans receivable balance | $ | 93.7 | ||||||
| Due to an increase in the average yield | 99.3 | |||||||
| Total increase in finance charges | $ | 193.0 | ||||||
| (In millions) | For the Years Ended December 31, | |||||||||||||||||||
| Provision for Credit Losses | 2020 | 2019 | Change | |||||||||||||||||
| New Consumer Loan assignments | $ | 518.6 | $ | — | $ | 518.6 | ||||||||||||||
| Forecast changes | 38.3 | 76.4 | (38.1) | |||||||||||||||||
| Total | $ | 556.9 | $ | 76.4 | $ | 480.5 | ||||||||||||||
| (In millions) | Payments Due by Period | ||||||||||||||||||||||||||||||||||
| Total |
Less than
1 Year |
1-3 Years | 3-5 Years |
More than
5 Years |
Other | ||||||||||||||||||||||||||||||
| Long-term debt, including current maturities (1) | $ | 4,635.1 | $ | 1,092.0 | $ | 2,668.1 | $ | 475.0 | $ | 400.0 | $ | — | |||||||||||||||||||||||
| Dealer Holdback (2) | 818.0 | 140.5 | 239.2 | 233.2 | 205.1 | — | |||||||||||||||||||||||||||||
| Operating lease obligations (3) | 1.8 | 1.1 | 0.7 | — | — | — | |||||||||||||||||||||||||||||
| Purchase obligations (4) | 9.6 | 4.6 | 4.4 | 0.6 | — | — | |||||||||||||||||||||||||||||
| Other future obligations (5) | 41.8 | — | — | — | — | 41.8 | |||||||||||||||||||||||||||||
| Total contractual obligations | $ | 5,506.3 | $ | 1,238.2 | $ | 2,912.4 | $ | 708.8 | $ | 605.1 | $ | 41.8 | |||||||||||||||||||||||
| Page | |||||
| Report of Independent Registered Public Accounting Firm | |||||
| Consolidated Balance Sheets as of December 31, 2020 and 2019 | |||||
| Consolidated Statements of Income for the years ended December 31, 2020, 2019 and 2018 | |||||
| Consolidated Statements of Comprehensive Income for the years ended December 31, 2020, 2019 and 2018 | |||||
| Consolidated Statements of Shareholders’ Equity for the years ended December 31, 2020, 2019 and 2018 | |||||
| Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018 | |||||
| Notes to Consolidated Financial Statements | |||||
| (Dollars in millions, except per share data) | As of December 31, | ||||||||||
| 2020 | 2019 | ||||||||||
| ASSETS: | |||||||||||
| Cash and cash equivalents | $ |
|
$ |
|
|||||||
| Restricted cash and cash equivalents |
|
|
|||||||||
| Restricted securities available for sale |
|
|
|||||||||
|
Loans receivable
|
|
|
|||||||||
| Allowance for credit losses |
(
|
(
|
|||||||||
| Loans receivable, net |
|
|
|||||||||
| Property and equipment, net |
|
|
|||||||||
| Income taxes receivable |
|
|
|||||||||
| Other assets |
|
|
|||||||||
| Total Assets | $ |
|
$ |
|
|||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY: | |||||||||||
| Liabilities: | |||||||||||
| Accounts payable and accrued liabilities | $ |
|
$ |
|
|||||||
| Revolving secured line of credit |
|
|
|||||||||
| Secured financing |
|
|
|||||||||
| Senior notes |
|
|
|||||||||
| Mortgage note |
|
|
|||||||||
| Deferred income taxes, net |
|
|
|||||||||
| Income taxes payable |
|
|
|||||||||
| Total Liabilities |
|
|
|||||||||
| Commitments and Contingencies - See Note 16 | |||||||||||
| Shareholders’ Equity: | |||||||||||
|
Preferred stock, $
|
|
|
|||||||||
|
Common stock, $
December 31, 2019, respectively
|
|
|
|||||||||
| Paid-in capital |
|
|
|||||||||
| Retained earnings |
|
|
|||||||||
| Accumulated other comprehensive income |
|
|
|||||||||
| Total Shareholders’ Equity |
|
|
|||||||||
| Total Liabilities and Shareholders’ Equity | $ |
|
$ |
|
|||||||
| (Dollars in millions, except per share data) | For the Years Ended December 31, | ||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Revenue: | |||||||||||||||||
| Finance charges | $ |
|
$ |
|
$ |
|
|||||||||||
| Premiums earned |
|
|
|
||||||||||||||
| Other income |
|
|
|
||||||||||||||
| Total revenue |
|
|
|
||||||||||||||
| Costs and expenses: | |||||||||||||||||
| Salaries and wages |
|
|
|
||||||||||||||
| General and administrative |
|
|
|
||||||||||||||
| Sales and marketing |
|
|
|
||||||||||||||
| Provision for credit losses |
|
|
|
||||||||||||||
| Interest |
|
|
|
||||||||||||||
| Provision for claims |
|
|
|
||||||||||||||
| Loss on extinguishment of debt |
|
|
|
||||||||||||||
| Total costs and expenses |
|
|
|
||||||||||||||
| Income before provision for income taxes |
|
|
|
||||||||||||||
| Provision for income taxes |
|
|
|
||||||||||||||
| Net income | $ |
|
$ |
|
$ |
|
|||||||||||
| Net income per share: | |||||||||||||||||
| Basic | $ |
|
$ |
|
$ |
|
|||||||||||
| Diluted | $ |
|
$ |
|
$ |
|
|||||||||||
| Weighted average shares outstanding: | |||||||||||||||||
| Basic |
|
|
|
||||||||||||||
| Diluted |
|
|
|
||||||||||||||
| (In millions) | For the Years Ended December 31, | ||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Net income | $ |
|
$ |
|
$ |
|
|||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||
| Unrealized gain (loss) on securities, net of tax |
|
|
(
|
||||||||||||||
| Other comprehensive income (loss) |
|
|
(
|
||||||||||||||
| Comprehensive income | $ |
|
$ |
|
$ |
|
|||||||||||
| (Dollars in millions) | Common Stock | ||||||||||||||||||||||||||||||||||
| Number | Amount | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||
| Balance, January 1, 2018 |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
||||||||||||||||||||||||
| Net income | — |
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Other comprehensive loss
|
— |
|
|
|
(
|
(
|
|||||||||||||||||||||||||||||
| Stock-based compensation | — |
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Restricted stock awards, net of forfeitures
|
|
— | — | — | — | — | |||||||||||||||||||||||||||||
| Repurchase of common stock |
(
|
|
(
|
(
|
|
(
|
|||||||||||||||||||||||||||||
|
Restricted stock units converted to common stock
|
|
— | — | — | — | — | |||||||||||||||||||||||||||||
| Balance, December 31, 2018 |
|
|
|
|
(
|
|
|||||||||||||||||||||||||||||
| Net income | — |
|
|
|
|
|
|||||||||||||||||||||||||||||
| Other comprehensive income | — |
|
|
|
|
|
|||||||||||||||||||||||||||||
| Stock-based compensation | — |
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Restricted stock awards, net of forfeitures
|
|
— | — | — | — | — | |||||||||||||||||||||||||||||
| Repurchase of common stock |
(
|
|
(
|
(
|
|
(
|
|||||||||||||||||||||||||||||
|
Restricted stock units converted to common stock
|
|
— | — | — | — | — | |||||||||||||||||||||||||||||
| Balance, December 31, 2019 |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Net income | — |
|
|
|
|
|
|||||||||||||||||||||||||||||
| Other comprehensive income | — |
|
|
|
|
|
|||||||||||||||||||||||||||||
| Stock-based compensation | — |
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Restricted stock awards, net of forfeitures
|
(
|
— | — | — | — | — | |||||||||||||||||||||||||||||
| Repurchase of common stock |
(
|
|
(
|
(
|
|
(
|
|||||||||||||||||||||||||||||
|
Restricted stock units converted to common stock
|
|
— | — | — | — | — | |||||||||||||||||||||||||||||
| Balance, December 31, 2020 |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||
| (In millions) | For the Years Ended December 31, | ||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Cash Flows From Operating Activities: | |||||||||||||||||
| Net income | $ |
|
$ |
|
$ |
|
|||||||||||
| Adjustments to reconcile cash provided by operating activities: | |||||||||||||||||
| Provision for credit losses |
|
|
|
||||||||||||||
| Depreciation |
|
|
|
||||||||||||||
| Amortization |
|
|
|
||||||||||||||
| Provision for deferred income taxes |
|
|
|
||||||||||||||
| Stock-based compensation |
|
|
|
||||||||||||||
| Loss on extinguishment of debt |
|
|
|
||||||||||||||
| Other |
(
|
(
|
(
|
||||||||||||||
| Change in operating assets and liabilities: | |||||||||||||||||
| Increase (decrease) in accounts payable and accrued liabilities |
(
|
|
|
||||||||||||||
| Increase in income taxes receivable |
(
|
(
|
(
|
||||||||||||||
| Decrease in income taxes payable |
|
(
|
(
|
||||||||||||||
| Decrease (increase) in other assets |
|
|
(
|
||||||||||||||
| Net cash provided by operating activities |
|
|
|
||||||||||||||
| Cash Flows From Investing Activities: | |||||||||||||||||
| Purchases of restricted securities available for sale |
(
|
(
|
(
|
||||||||||||||
| Proceeds from sale of restricted securities available for sale |
|
|
|
||||||||||||||
| Maturities of restricted securities available for sale |
|
|
|
||||||||||||||
| Principal collected on Loans receivable |
|
|
|
||||||||||||||
| Advances to Dealers |
(
|
(
|
(
|
||||||||||||||
| Purchases of Consumer Loans |
(
|
(
|
(
|
||||||||||||||
| Accelerated payments of Dealer Holdback |
(
|
(
|
(
|
||||||||||||||
| Payments of Dealer Holdback |
(
|
(
|
(
|
||||||||||||||
| Purchases of property and equipment |
(
|
(
|
(
|
||||||||||||||
| Net cash used in investing activities |
(
|
(
|
(
|
||||||||||||||
| Cash Flows From Financing Activities: | |||||||||||||||||
| Borrowings under revolving secured line of credit |
|
|
|
||||||||||||||
| Repayments under revolving secured line of credit |
(
|
(
|
(
|
||||||||||||||
| Proceeds from secured financing |
|
|
|
||||||||||||||
| Repayments of secured financing |
(
|
(
|
(
|
||||||||||||||
| Proceeds from issuance of senior notes |
|
|
|
||||||||||||||
| Repayment of senior notes |
(
|
(
|
|
||||||||||||||
| Proceeds from mortgage note |
|
|
|
||||||||||||||
| Payments of debt issuance costs and debt extinguishment costs |
(
|
(
|
(
|
||||||||||||||
| Repurchase of common stock |
(
|
(
|
(
|
||||||||||||||
| Other |
(
|
(
|
(
|
||||||||||||||
| Net cash provided (used) by financing activities |
(
|
|
|
||||||||||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents |
(
|
|
|
||||||||||||||
|
Cash and cash equivalents and restricted cash and cash equivalents, beginning of period
|
|
|
|
||||||||||||||
|
Cash and cash equivalents and restricted cash and cash equivalents, end of period
|
$ |
|
$ |
|
$ |
|
|||||||||||
| Supplemental Disclosure of Cash Flow Information: | |||||||||||||||||
| Cash paid during the period for interest | $ |
|
$ |
|
$ |
|
|||||||||||
| Cash paid during the period for income taxes | $ |
|
$ |
|
$ |
|
|||||||||||
| For the Years Ended December 31, | ||||||||||||||||||||
| Consumer Loan Assignment Volume | 2020 | 2019 | 2018 | |||||||||||||||||
|
Percentage of total unit volume with either FICO
®
scores below 650 or no FICO
®
scores
|
|
% |
|
% |
|
% | ||||||||||||||
| Unit Volume | Dollar Volume (1) | |||||||||||||||||||||||||
| For the Years Ended December 31, | Dealer Loans | Purchased Loans | Dealer Loans | Purchased Loans | ||||||||||||||||||||||
| 2018 |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||
| 2019 |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||
| 2020 |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||
| (In millions) | As of December 31, | ||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Cash and cash equivalents | $ |
|
$ |
|
$ |
|
|||||||||||
| Restricted cash and cash equivalents |
|
|
|
||||||||||||||
|
Total cash and cash equivalents and restricted cash and cash equivalents
|
$ |
|
$ |
|
$ |
|
|||||||||||
| (In millions) | As of December 31, | ||||||||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||||
|
Carrying
Amount |
Estimated
Fair Value |
Carrying
Amount |
Estimated
Fair Value |
||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash and cash equivalents | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Restricted cash and cash equivalents |
|
|
|
|
|||||||||||||||||||
| Restricted securities available for sale |
|
|
|
|
|||||||||||||||||||
| Loans receivable, net |
|
|
|
|
|||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Revolving secured line of credit | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Secured financing |
|
|
|
|
|||||||||||||||||||
| Senior notes |
|
|
|
|
|||||||||||||||||||
| Mortgage note |
|
|
|
|
|||||||||||||||||||
| (In millions) | As of December 31, 2020 | ||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash and cash equivalents (1) | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Restricted cash and cash equivalents (1) |
|
|
|
|
|||||||||||||||||||
|
Restricted securities available for sale (2)
|
|
|
|
|
|||||||||||||||||||
| Loans receivable, net (1) |
|
|
|
|
|||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Revolving secured line of credit (1) | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Secured financing (1) |
|
|
|
|
|||||||||||||||||||
| Senior notes (1) |
|
|
|
|
|||||||||||||||||||
| Mortgage note (1) |
|
|
|
|
|||||||||||||||||||
| (In millions) | As of December 31, 2019 | ||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash and cash equivalents (1) | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Restricted cash and cash equivalents (1) |
|
|
|
|
|||||||||||||||||||
|
Restricted securities available for sale (2)
|
|
|
|
|
|||||||||||||||||||
| Loans receivable, net (1) |
|
|
|
|
|||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Revolving secured line of credit (1) | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Secured financing (1) |
|
|
|
|
|||||||||||||||||||
| Senior notes (1) |
|
|
|
|
|||||||||||||||||||
| Mortgage note (1) |
|
|
|
|
|||||||||||||||||||
| (In millions) | As of December 31, 2020 | ||||||||||||||||||||||
|
Amortized
Cost |
Gross Unrealized Gains | Gross Unrealized Losses |
Estimated
Fair Value |
||||||||||||||||||||
|
Corporate bonds
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| U.S. Government and agency securities |
|
|
|
|
|||||||||||||||||||
| Asset-backed securities |
|
|
|
|
|||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|||||||||||||||||||
|
Total restricted securities available for sale
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| (In millions) | As of December 31, 2019 | ||||||||||||||||||||||
|
Amortized
Cost |
Gross Unrealized Gains | Gross Unrealized Losses |
Estimated
Fair Value |
||||||||||||||||||||
|
Corporate bonds
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| U.S. Government and agency securities |
|
|
|
|
|||||||||||||||||||
| Asset-backed securities |
|
|
|
|
|||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|||||||||||||||||||
|
Total restricted securities available for sale
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| (In millions) | Securities Available for Sale with Gross Unrealized Losses as of December 31, 2020 | ||||||||||||||||||||||||||||||||||
| Less than 12 Months | 12 Months or More | ||||||||||||||||||||||||||||||||||
|
Estimated
Fair Value |
Gross
Unrealized Losses |
Estimated
Fair Value |
Gross
Unrealized Losses |
Total Estimated
Fair Value |
Total
Gross
Unrealized Losses
|
||||||||||||||||||||||||||||||
|
Corporate bonds
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| U.S. Government and agency securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Asset-backed securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Total restricted securities available for sale
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| (In millions) | Securities Available for Sale with Gross Unrealized Losses as of December 31, 2019 | ||||||||||||||||||||||||||||||||||
| Less than 12 Months | 12 Months or More | ||||||||||||||||||||||||||||||||||
|
Estimated
Fair Value |
Gross
Unrealized Losses |
Estimated
Fair Value |
Gross
Unrealized Losses |
Total Estimated
Fair Value |
Total Gross
Unrealized Losses |
||||||||||||||||||||||||||||||
|
Corporate bonds
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| U.S. Government and agency securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Asset-backed securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Total restricted securities available for sale
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| (In millions) | As of December 31, | |||||||||||||||||||||||||
| 2020 | 2019 | |||||||||||||||||||||||||
| Contractual Maturity | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||||||||||||
| Within one year | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
| Over one year to five years |
|
|
|
|
||||||||||||||||||||||
| Over five years to ten years |
|
|
|
|
||||||||||||||||||||||
| Over ten years |
|
|
|
|
||||||||||||||||||||||
|
Total restricted securities available for sale
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
| (In millions) | As of December 31, 2020 | ||||||||||||||||
| Dealer Loans | Purchased Loans | Total | |||||||||||||||
| Loans receivable | $ |
|
$ |
|
$ |
|
|||||||||||
| Allowance for credit losses |
(
|
(
|
(
|
||||||||||||||
| Loans receivable, net | $ |
|
$ |
|
$ |
|
|||||||||||
| (In millions) | As of December 31, 2019 | ||||||||||||||||
| Dealer Loans | Purchased Loans | Total | |||||||||||||||
| Loans receivable | $ |
|
$ |
|
$ |
|
|||||||||||
| Allowance for credit losses |
(
|
(
|
(
|
||||||||||||||
| Loans receivable, net | $ |
|
$ |
|
$ |
|
|||||||||||
|
(In millions)
|
For the Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Loans Receivable
|
Allowance for Credit Losses
|
Loans Receivable, Net
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Dealer Loans
|
Purchased Loans
|
Total
|
Dealer Loans
|
Purchased Loans
|
Total
|
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Balance, beginning of period
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
Adoption of CECL (1)
|
|
|
|
(
|
(
|
(
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Finance charges
|
|
|
|
(
|
(
|
(
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Provision for credit losses
|
|
|
|
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
|
New Consumer Loan assignments (2)
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Collections (3)
|
(
|
(
|
(
|
|
|
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
|
Accelerated Dealer Holdback payments
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Dealer Holdback payments
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Transfers (4)
|
(
|
|
|
|
(
|
|
(
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Write-offs
|
(
|
(
|
(
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Recoveries (5)
|
|
|
|
(
|
(
|
(
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Deferral of Loan origination costs
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Balance, end of period
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
(In millions)
|
For the Year Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Loans Receivable
|
Allowance for Credit Losses
|
Loans Receivable, Net
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Dealer Loans
|
Purchased Loans
|
Total
|
Dealer Loans
|
Purchased Loans
|
Total
|
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Balance, beginning of period
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
Finance charges
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Provision for credit losses
|
|
|
|
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
|
New Consumer Loan assignments (2)
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Collections (3)
|
(
|
(
|
(
|
|
|
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
|
Accelerated Dealer Holdback payments
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Dealer Holdback payments
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Transfers (4)
|
(
|
|
|
|
(
|
|
(
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Write-offs
|
(
|
(
|
(
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Recoveries (5)
|
|
|
|
(
|
(
|
(
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Deferral of Loan origination costs
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Balance, end of period
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
(In millions)
|
For the Year Ended December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Loans Receivable
|
Allowance for Credit Losses
|
Loans Receivable, Net
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Dealer Loans
|
Purchased Loans
|
Total
|
Dealer Loans
|
Purchased Loans
|
Total
|
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Balance, beginning of period
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
Finance charges
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Provision for credit losses
|
|
|
|
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
|
New Consumer Loan assignments (2)
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Collections (3)
|
(
|
(
|
(
|
|
|
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
|
Accelerated Dealer Holdback payments
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Dealer Holdback payments
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Transfers (4)
|
(
|
|
|
|
(
|
|
(
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Write-offs
|
(
|
(
|
(
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Recoveries (5)
|
|
|
|
(
|
(
|
(
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Deferral of Loan origination costs
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Balance, end of period
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
(In millions)
|
For the Year Ended December 31, 2020 | |||||||||||||||||||
|
Provision for Credit Losses
|
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||||||||||
|
New Consumer Loan assignments
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
Forecast changes
|
|
|
|
|||||||||||||||||
|
Total
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
(In millions)
|
For the Year Ended December 31, 2020 | |||||||||||||||||||
|
New Consumer Loan Assignments
|
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||||||||||
|
Contractual net cash flows at the time of assignment (1)
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
Expected net cash flows at the time of assignment (2)
|
|
|
|
|||||||||||||||||
|
Loans receivable at the time of assignment (3)
|
|
|
|
|||||||||||||||||
|
|
||||||||||||||||||||
|
Provision for credit losses expense at the time of assignment
|
$ |
(
|
$ |
(
|
$ |
(
|
||||||||||||||
|
Expected future finance charges at the time of assignment (4)
|
|
|
|
|||||||||||||||||
|
Expected net Loan income at the time of assignment (5)
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
(In millions)
|
For the Year Ended December 31, 2019 | |||||||||||||||||||
|
New Consumer Loan Assignments
|
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||||||||||
|
Contractual net cash flows at the time of assignment (1)
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
Expected net cash flows at the time of assignment (2)
|
|
|
|
|||||||||||||||||
|
Loans receivable at the time of assignment (3)
|
|
|
|
|||||||||||||||||
|
Provision for credit losses expense at the time of assignment
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
Expected future finance charges at the time of assignment (4)
|
|
|
|
|||||||||||||||||
|
Expected net Loan income at the time of assignment (5)
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
(In millions)
|
For the Year Ended December 31, 2018 | |||||||||||||||||||
|
New Consumer Loan Assignments
|
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||||||||||
|
Contractual net cash flows at the time of assignment (1)
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
Expected net cash flows at the time of assignment (2)
|
|
|
|
|||||||||||||||||
|
Loans receivable at the time of assignment (3)
|
|
|
|
|||||||||||||||||
|
Provision for credit losses expense at the time of assignment
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
Expected future finance charges at the time of assignment (4)
|
|
|
|
|||||||||||||||||
|
Expected net Loan income at the time of assignment (5)
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
(In millions)
|
For the Year Ended December 31, 2020 | |||||||||||||||||||
|
Expected Future Net Cash Flows
|
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||||||||||
|
Balance, beginning of period
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
New Consumer Loan assignments (1)
|
|
|
|
|||||||||||||||||
|
Realized net cash flows (2)
|
(
|
(
|
(
|
|||||||||||||||||
|
Forecast changes
|
(
|
(
|
(
|
|||||||||||||||||
|
Transfers (3)
|
(
|
|
|
|||||||||||||||||
|
Balance, end of period
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
(In millions)
|
For the Year Ended December 31, 2019 | |||||||||||||||||||
|
Expected Future Net Cash Flows
|
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||||||||||
|
Balance, beginning of period
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
New Consumer Loan assignments (1)
|
|
|
|
|||||||||||||||||
|
Realized net cash flows (2)
|
(
|
(
|
(
|
|||||||||||||||||
|
Forecast changes
|
(
|
|
|
|||||||||||||||||
|
Transfers (3)
|
(
|
|
|
|||||||||||||||||
|
Balance, end of period
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| (In millions) | For the Year Ended December 31, 2018 | |||||||||||||||||||
| Expected Future Net Cash Flows | Dealer Loans | Purchased Loans | Total | |||||||||||||||||
| Balance, beginning of period | $ |
|
$ |
|
$ |
|
||||||||||||||
| New Consumer Loan assignments (1) |
|
|
|
|||||||||||||||||
| Realized net cash flows (2) |
(
|
(
|
(
|
|||||||||||||||||
| Forecast changes |
|
|
|
|||||||||||||||||
| Transfers (3) |
(
|
|
|
|||||||||||||||||
| Balance, end of period | $ |
|
$ |
|
$ |
|
||||||||||||||
| Total Loans as of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
| Forecasted Collection Percentage as of (1) | Current Forecast Variance from | |||||||||||||||||||||||||||||||||||||||||||
| Consumer Loan Assignment Year | December 31, 2020 | December 31, 2019 | December 31, 2018 |
Initial
Forecast |
December 31, 2019 | December 31, 2018 |
Initial
Forecast |
|||||||||||||||||||||||||||||||||||||
| 2011 |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||
| 2012 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||
| 2013 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
|
% | ||||||||||||||||||||||||||||||
| 2014 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
-
|
% | ||||||||||||||||||||||||||||||
| 2015 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
-
|
% | ||||||||||||||||||||||||||||||
| 2016 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
-
|
% | ||||||||||||||||||||||||||||||
| 2017 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
|
% | ||||||||||||||||||||||||||||||
| 2018 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
|
% | ||||||||||||||||||||||||||||||
| 2019 |
|
% |
|
% | — |
|
% |
-
|
% | — |
|
% | ||||||||||||||||||||||||||||||||
| 2020 |
|
% | — | — |
|
% | — | — |
|
% | ||||||||||||||||||||||||||||||||||
| Dealer Loans as of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
| Forecasted Collection Percentage as of (1) (2) | Current Forecast Variance from | |||||||||||||||||||||||||||||||||||||||||||
| Consumer Loan Assignment Year | December 31, 2020 | December 31, 2019 | December 31, 2018 |
Initial
Forecast |
December 31, 2019 | December 31, 2018 |
Initial
Forecast |
|||||||||||||||||||||||||||||||||||||
| 2011 |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||
| 2012 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
|
% | ||||||||||||||||||||||||||||||
| 2013 |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||
| 2014 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
-
|
% | ||||||||||||||||||||||||||||||
| 2015 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
-
|
% | ||||||||||||||||||||||||||||||
| 2016 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
-
|
% | ||||||||||||||||||||||||||||||
| 2017 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
-
|
% | ||||||||||||||||||||||||||||||
| 2018 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
-
|
% | ||||||||||||||||||||||||||||||
| 2019 |
|
% |
|
% | — |
|
% |
-
|
% | — |
|
% | ||||||||||||||||||||||||||||||||
| 2020 |
|
% | — | — |
|
% | — | — |
|
% | ||||||||||||||||||||||||||||||||||
| Purchased Loans as of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
| Forecasted Collection Percentage as of (1) (2) | Current Forecast Variance from | |||||||||||||||||||||||||||||||||||||||||||
| Consumer Loan Assignment Year | December 31, 2020 | December 31, 2019 | December 31, 2018 |
Initial
Forecast |
December 31, 2019 | December 31, 2018 |
Initial
Forecast |
|||||||||||||||||||||||||||||||||||||
| 2011 |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||
| 2012 |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||
| 2013 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||
| 2014 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
|
% | ||||||||||||||||||||||||||||||
| 2015 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
|
% | ||||||||||||||||||||||||||||||
| 2016 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
-
|
% | ||||||||||||||||||||||||||||||
| 2017 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
|
% | ||||||||||||||||||||||||||||||
| 2018 |
|
% |
|
% |
|
% |
|
% |
-
|
% |
-
|
% |
|
% | ||||||||||||||||||||||||||||||
| 2019 |
|
% |
|
% | — |
|
% |
|
% | — |
|
% | ||||||||||||||||||||||||||||||||
| 2020 |
|
% | — | — |
|
% | — | — |
|
% | ||||||||||||||||||||||||||||||||||
|
(In millions)
|
Total Loans as of December 31, 2020 (1) (2) | |||||||||||||||||||||||||||||||
|
Pre-term Consumer Loans (3)
|
Post-term Consumer Loans (4)
|
Total
|
||||||||||||||||||||||||||||||
|
Consumer Loan Assignment Year
|
Current (5)
|
Past Due
11-90 Days |
Past Due
Over 90 Days
|
|||||||||||||||||||||||||||||
| 2015 and prior | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2017 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2018 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2019 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2020 |
|
|
|
|
|
|||||||||||||||||||||||||||
| $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
|
(In millions)
|
Dealer Loans as of December 31, 2020 (1) | |||||||||||||||||||||||||||||||
|
Pre-term Consumer Loans (3)
|
Post-term Consumer Loans (4)
|
Total
|
||||||||||||||||||||||||||||||
|
Consumer Loan Assignment Year
|
Current (5)
|
Past Due
11-90 Days |
Past Due
Over 90 Days |
|||||||||||||||||||||||||||||
| 2015 and prior | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2017 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2018 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2019 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2020 |
|
|
|
|
|
|||||||||||||||||||||||||||
| $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
|
(In millions)
|
Purchased Loans as of December 31, 2020 (2) | |||||||||||||||||||||||||||||||
|
Pre-term Consumer Loans (3)
|
Post-term Consumer Loans (4)
|
Total
|
||||||||||||||||||||||||||||||
|
Consumer Loan Assignment Year
|
Current (5)
|
Past Due
11-90 Days |
Past Due
Over 90 Days |
|||||||||||||||||||||||||||||
| 2015 and prior | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2017 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2018 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2019 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2020 |
|
|
|
|
|
|||||||||||||||||||||||||||
| $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| (In millions) | For the Year Ended December 31, 2019 | ||||||||||||||||
| Dealer Loans | Purchased Loans | Total | |||||||||||||||
| Balance, beginning of period | $ |
|
$ |
|
$ |
|
|||||||||||
| New Consumer Loan assignments (1) |
|
|
|
||||||||||||||
| Accretion (2) |
(
|
(
|
(
|
||||||||||||||
| Provision for credit losses |
|
|
|
||||||||||||||
| Forecast changes |
(
|
|
|
||||||||||||||
| Transfers (3) |
(
|
|
|
||||||||||||||
| Balance, end of period | $ |
|
$ |
|
$ |
|
|||||||||||
| (In millions) | For the Year Ended December 31, 2018 | ||||||||||||||||
| Dealer Loans | Purchased Loans | Total | |||||||||||||||
| Balance, beginning of period | $ |
|
$ |
|
$ |
|
|||||||||||
| New Consumer Loan assignments (1) |
|
|
|
||||||||||||||
| Accretion (2) |
(
|
(
|
(
|
||||||||||||||
| Provision for credit losses |
|
|
|
||||||||||||||
| Forecast changes |
|
|
|
||||||||||||||
| Transfers (3) |
(
|
|
|
||||||||||||||
| Balance, end of period | $ |
|
$ |
|
$ |
|
|||||||||||
| (In millions) | As of December 31, 2019 | ||||||||||||||||||||||||||||||||||
|
Loan Pool Performance
Meets or Exceeds Initial Estimates |
Loan Pool Performance
Less than Initial Estimates |
||||||||||||||||||||||||||||||||||
|
Dealer
Loans |
Purchased Loans | Total |
Dealer
Loans |
Purchased Loans | Total | ||||||||||||||||||||||||||||||
| Loans receivable | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
|
Allowance for credit losses
|
|
|
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||
| Loans receivable, net | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| (In millions) | As of December 31, | ||||||||||
| 2020 | 2019 | ||||||||||
| Land and land improvements | $ |
|
$ |
|
|||||||
| Building and improvements |
|
|
|||||||||
| Data processing equipment and software |
|
|
|||||||||
| Office furniture and equipment |
|
|
|||||||||
| Leasehold improvements |
|
|
|||||||||
| Total property and equipment |
|
|
|||||||||
| Less: Accumulated depreciation on property and equipment |
(
|
(
|
|||||||||
| Total property and equipment, net | $ |
|
$ |
|
|||||||
| (In millions) | For the Years Ended December 31, | ||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Net assumed written premiums | $ |
|
$ |
|
$ |
|
|||||||||||
| Net premiums earned |
|
|
|
||||||||||||||
| Provision for claims |
|
|
|
||||||||||||||
| Amortization of capitalized acquisition costs |
|
|
|
||||||||||||||
| (In millions) | As of December 31, | ||||||||||||||||
| Balance Sheet location | 2020 | 2019 | |||||||||||||||
| Trust assets | Restricted cash and cash equivalents | $ |
|
$ |
|
||||||||||||
| Trust assets | Restricted securities available for sale |
|
|
||||||||||||||
| Unearned premium | Accounts payable and accrued liabilities |
|
|
||||||||||||||
| Claims reserve (1) | Accounts payable and accrued liabilities |
|
|
||||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||||||||||||||||||||||||
| Cumulative Incurred Claims | As of December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||
| Incident Year | As of December 31, | Claims Reserve | Cumulative Number of Reported Claims | |||||||||||||||||||||||||||||||||||||||||
| 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||||||||||
| 2016 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
|||||||||||||||||||||||||||||||
| 2017 |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| 2018 |
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| 2019 |
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
| 2020 |
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
|
|||||||||||||||||||||||||||||||||||||||
| (In millions) | Cumulative Paid Claims | |||||||||||||||||||||||||||||||
| As of December 31, | ||||||||||||||||||||||||||||||||
| Incident Year | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||||||
| 2016 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||
| 2017 |
|
|
|
|
||||||||||||||||||||||||||||
| 2018 |
|
|
|
|||||||||||||||||||||||||||||
| 2019 |
|
|
||||||||||||||||||||||||||||||
| 2020 |
|
|||||||||||||||||||||||||||||||
| Total | $ |
|
||||||||||||||||||||||||||||||
| Average Annual Percentage Payout of Incurred Claims by Age | ||||||||||||||||||||||||||||||||
| Claim Age (Years) | 1 | 2 | 3 | 4 | 5 | |||||||||||||||||||||||||||
| Payout Percentage |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||
| (In millions) | For the Years Ended December 31, | ||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Ancillary product profit sharing | $ |
|
$ |
|
$ |
|
|||||||||||
| Remarketing fees |
|
|
|
||||||||||||||
| Dealer enrollment fees |
|
|
|
||||||||||||||
| Interest |
|
|
|
||||||||||||||
| Dealer support products and services |
|
|
|
||||||||||||||
| GPS-SID fees |
|
|
|
||||||||||||||
| Other |
|
|
|
||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
|||||||||||
| (In millions) | For the Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
| Ancillary product profit sharing | Remarketing fees | Dealer enrollment fees | Interest | Dealer support products and services | Other | Total Other Income | |||||||||||||||||||||||||||||||||||
| Source of income | |||||||||||||||||||||||||||||||||||||||||
| Third Party Providers | $ |
|
$ |
|
$ | — | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||
| Dealers |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||
| Timing of revenue recognition | |||||||||||||||||||||||||||||||||||||||||
| Over time | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||
| At a point in time |
|
|
— |
|
|
|
|
||||||||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||
| (In millions) | As of December 31, 2020 | |||||||||||||||||||||||||
| Principal Outstanding | Unamortized Debt Issuance Costs | Unamortized Discount |
Carrying
Amount |
|||||||||||||||||||||||
| Revolving secured line of credit (1) | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
| Secured financing (2) |
|
(
|
|
|
||||||||||||||||||||||
| Senior notes |
|
(
|
|
|
||||||||||||||||||||||
| Mortgage note |
|
|
|
|
||||||||||||||||||||||
| Total debt | $ |
|
$ |
(
|
$ |
|
$ |
|
||||||||||||||||||
| (In millions) | As of December 31, 2019 | |||||||||||||||||||||||||
| Principal Outstanding | Unamortized Debt Issuance Costs | Unamortized Discount |
Carrying
Amount |
|||||||||||||||||||||||
| Revolving secured line of credit (1) | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
| Secured financing (2) |
|
(
|
|
|
||||||||||||||||||||||
| Senior notes |
|
(
|
(
|
|
||||||||||||||||||||||
| Mortgage note |
|
|
|
|
||||||||||||||||||||||
| Total debt | $ |
|
$ |
(
|
$ |
(
|
$ |
|
||||||||||||||||||
|
(Dollars in millions)
|
|||||||||||||||||||||||||||||||||||
| Financings | Wholly-owned Subsidiary | Maturity Date | Financing Amount | Interest Rate Basis as of December 31, 2020 | |||||||||||||||||||||||||||||||
|
Revolving Secured
Line of Credit |
|
|
$ |
|
(1) |
At our option, either LIBOR plus
|
|||||||||||||||||||||||||||||
| Warehouse Facility II (2) |
|
|
(3) | $ |
|
LIBOR plus
|
|||||||||||||||||||||||||||||
| Warehouse Facility IV (2) |
|
|
(3) | $ |
|
LIBOR plus
|
|||||||||||||||||||||||||||||
| Warehouse Facility V (2) |
|
|
(5) | $ |
|
LIBOR plus
|
|||||||||||||||||||||||||||||
| Warehouse Facility VI (2) |
|
|
(3) | $ |
|
LIBOR plus
|
|||||||||||||||||||||||||||||
| Warehouse Facility VII (2) |
|
|
(6) | $ |
|
Commercial paper rate plus
|
|||||||||||||||||||||||||||||
| Warehouse Facility VIII (2) |
|
|
(3) | $ |
|
LIBOR plus
|
|||||||||||||||||||||||||||||
| Term ABS 2017-3 (2) |
|
|
(3) | $ |
|
Fixed rate | |||||||||||||||||||||||||||||
| Term ABS 2018-1 (2) |
|
|
(3) | $ |
|
Fixed rate | |||||||||||||||||||||||||||||
| Term ABS 2018-2 (2) |
|
|
(3) | $ |
|
Fixed rate | |||||||||||||||||||||||||||||
| Term ABS 2018-3 (2) |
|
|
(3) | $ |
|
Fixed rate | |||||||||||||||||||||||||||||
| Term ABS 2019-1 (2) |
|
|
(3) | $ |
|
Fixed rate | |||||||||||||||||||||||||||||
| Term ABS 2019-2 (2) |
|
|
(7) | $ |
|
Fixed rate | |||||||||||||||||||||||||||||
| Term ABS 2019-3 (2) |
|
|
(3) | $ |
|
Fixed rate | |||||||||||||||||||||||||||||
| Term ABS 2020-1 (2) |
|
|
(3) | $ |
|
Fixed rate | |||||||||||||||||||||||||||||
| Term ABS 2020-2 (2) |
|
|
(3) | $ |
|
Fixed rate | |||||||||||||||||||||||||||||
| Term ABS 2020-3 (2) |
|
|
(3) | $ |
|
Fixed rate | |||||||||||||||||||||||||||||
| 2024 Senior Notes |
|
|
$ |
|
Fixed rate | ||||||||||||||||||||||||||||||
| 2026 Senior Notes |
|
|
$ |
|
Fixed rate | ||||||||||||||||||||||||||||||
| Mortgage Note (2) |
|
|
$ |
|
LIBOR plus
|
||||||||||||||||||||||||||||||
| (In millions) | For the Years Ended December 31, | ||||||||||
| 2020 | 2019 | ||||||||||
| Revolving Secured Line of Credit | |||||||||||
| Maximum outstanding principal balance | $ |
|
$ |
|
|||||||
| Average outstanding principal balance |
|
|
|||||||||
| Warehouse Facility II | |||||||||||
| Maximum outstanding principal balance | $ |
|
$ |
|
|||||||
| Average outstanding principal balance |
|
|
|||||||||
| Warehouse Facility IV | |||||||||||
| Maximum outstanding principal balance | $ |
|
$ |
|
|||||||
| Average outstanding principal balance |
|
|
|||||||||
| Warehouse Facility V | |||||||||||
| Maximum outstanding principal balance | $ |
|
$ |
|
|||||||
| Average outstanding principal balance |
|
|
|||||||||
| Warehouse Facility VI | |||||||||||
| Maximum outstanding principal balance | $ |
|
$ |
|
|||||||
| Average outstanding principal balance |
|
|
|||||||||
| Warehouse Facility VII | |||||||||||
| Maximum outstanding principal balance | $ |
|
$ |
|
|||||||
| Average outstanding principal balance |
|
|
|||||||||
| Warehouse Facility VIII | |||||||||||
| Maximum outstanding principal balance | $ |
|
$ |
|
|||||||
| Average outstanding principal balance |
|
|
|||||||||
| (Dollars in millions) | As of December 31, | ||||||||||
| 2020 | 2019 | ||||||||||
| Revolving Secured Line of Credit | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Amount available for borrowing (1) |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Warehouse Facility II | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Amount available for borrowing (1) |
|
|
|||||||||
| Loans pledged as collateral |
|
|
|||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Warehouse Facility IV | |||||||||||
| Principal balance outstanding | $ | — | $ |
|
|||||||
| Amount available for borrowing (1) |
|
|
|||||||||
| Loans pledged as collateral | — |
|
|||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Warehouse Facility V | |||||||||||
| Principal balance outstanding | $ |
|
$ | — | |||||||
| Amount available for borrowing (1) |
|
|
|||||||||
| Loans pledged as collateral |
|
— | |||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Warehouse Facility VI | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Amount available for borrowing (1) |
|
|
|||||||||
| Loans pledged as collateral |
|
|
|||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Warehouse Facility VII | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Amount available for borrowing (1) |
|
|
|||||||||
| Loans pledged as collateral |
|
|
|||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Warehouse Facility VIII | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Amount available for borrowing (1) |
|
|
|||||||||
| Loans pledged as collateral |
|
|
|||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Term ABS 2016-3 | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Loans pledged as collateral |
|
|
|||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Term ABS 2017-1 | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Loans pledged as collateral |
|
|
|||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| (1) Availability may be limited by the amount of assets pledged as collateral. | |||||||||||
| (Dollars in millions) | As of December 31, | ||||||||||
| 2020 | 2019 | ||||||||||
| Term ABS 2017-2 | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Loans pledged as collateral |
|
|
|||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Term ABS 2017-3 | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Loans pledged as collateral |
|
|
|||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Term ABS 2018-1 | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Loans pledged as collateral |
|
|
|||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Term ABS 2018-2 | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Loans pledged as collateral |
|
|
|||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Term ABS 2018-3 | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Loans pledged as collateral |
|
|
|||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Term ABS 2019-1 | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Loans pledged as collateral |
|
|
|||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Term ABS 2019-2 | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Loans pledged as collateral |
|
|
|||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Term ABS 2019-3 | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Loans pledged as collateral |
|
|
|||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
|
|||||||||
| Interest rate |
|
% |
|
% | |||||||
| Term ABS 2020-1 | |||||||||||
| Principal balance outstanding | $ |
|
$ | — | |||||||
| Loans pledged as collateral |
|
— | |||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
— | |||||||||
| Interest rate |
|
% | — | % | |||||||
| (Dollars in millions) | As of December 31, | ||||||||||
| 2020 | 2019 | ||||||||||
| Term ABS 2020-2 | |||||||||||
| Principal balance outstanding | $ |
|
$ | — | |||||||
| Loans pledged as collateral |
|
— | |||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
— | |||||||||
| Interest rate |
|
% | — | % | |||||||
| Term ABS 2020-3 | |||||||||||
| Principal balance outstanding | $ |
|
$ | — | |||||||
| Loans pledged as collateral |
|
— | |||||||||
| Restricted cash and cash equivalents pledged as collateral |
|
— | |||||||||
| Interest rate |
|
% | — | % | |||||||
| 2021 Senior Notes | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Interest rate |
|
% |
|
% | |||||||
| 2023 Senior Notes | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Interest rate |
|
% |
|
% | |||||||
| 2024 Senior Notes | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Interest rate |
|
% |
|
% | |||||||
| 2026 Senior Notes | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Interest rate |
|
% |
|
% | |||||||
| Mortgage Note | |||||||||||
| Principal balance outstanding | $ |
|
$ |
|
|||||||
| Interest rate |
|
% |
|
% | |||||||
| (Dollars in millions) | ||||||||||||||||||||
| Term ABS Financings | Close Date |
Net Book Value of Loans
Contributed at Closing |
Revolving Period | |||||||||||||||||
| Term ABS 2017-3 |
|
$ |
|
Through October 15, 2019 | ||||||||||||||||
| Term ABS 2018-1 |
|
|
Through February 17, 2020 | |||||||||||||||||
| Term ABS 2018-2 |
|
|
Through May 15, 2020 | |||||||||||||||||
| Term ABS 2018-3 |
|
|
Through August 17, 2020 | |||||||||||||||||
| Term ABS 2019-1 |
|
|
Through February 15, 2021 | |||||||||||||||||
| Term ABS 2019-2 |
|
|
Through August 15, 2022 | |||||||||||||||||
| Term ABS 2019-3 |
|
|
Through November 15, 2021 | |||||||||||||||||
| Term ABS 2020-1 |
|
|
Through February 15, 2022 | |||||||||||||||||
| Term ABS 2020-2 |
|
|
Through July 15, 2022 | |||||||||||||||||
| Term ABS 2020-3 |
|
|
Through October 17, 2022 | |||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||||||||||
| Year | Revolving Secured Line of Credit Facility | Warehouse Facilities |
Term ABS
Financings (1) |
Senior Notes | Mortgage Note | Total | ||||||||||||||||||||||||||||||||
| 2021 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||||
| 2022 |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| 2023 |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| 2024 |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| 2025 |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Thereafter |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
| As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
| Facility Amount | Facility Name | Purpose | Start | End | Notional | Cap Interest Rate (1) | ||||||||||||||||||||||||||||||||
| $ |
|
Warehouse Facility II | Cap Floating Rate | 12/2020 | 07/2022 | $ |
|
|
% | |||||||||||||||||||||||||||||
|
|
Warehouse Facility IV | Cap Floating Rate | 05/2017 | 04/2021 |
|
|
% | |||||||||||||||||||||||||||||||
| Cap Floating Rate | 05/2018 | 04/2021 |
|
|
% | |||||||||||||||||||||||||||||||||
| Cap Floating Rate | 07/2019 | 07/2023 |
|
|
% | |||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||
|
|
Warehouse Facility V | Cap Floating Rate | 12/2020 | 01/2026 |
|
|
% | |||||||||||||||||||||||||||||||
|
|
Warehouse Facility VII | Cap Floating Rate | 12/2017 | 11/2021 |
|
|
% | |||||||||||||||||||||||||||||||
| Cap Floating Rate | 01/2020 | 12/2023 |
|
|
% | |||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||
|
|
Warehouse Facility VIII | Cap Floating Rate | 08/2019 | 08/2023 |
|
|
% | |||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
| As of December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
| Facility Amount | Facility Name | Purpose | Start | End | Notional | Cap Interest Rate (1) | ||||||||||||||||||||||||||||||||
| $ |
|
Warehouse Facility II | Cap Floating Rate | 12/2017 | 12/2020 | $ |
|
|
% | |||||||||||||||||||||||||||||
|
|
Warehouse Facility IV | Cap Floating Rate | 05/2017 | 04/2021 |
|
|
% | |||||||||||||||||||||||||||||||
| Cap Floating Rate | 05/2018 | 04/2021 |
|
|
% | |||||||||||||||||||||||||||||||||
| Cap Floating Rate | 07/2019 | 07/2023 |
|
|
% | |||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||
|
|
Warehouse Facility V | Cap Floating Rate | 08/2018 | 08/2023 |
|
|
% | |||||||||||||||||||||||||||||||
|
|
Warehouse Facility VII | Cap Floating Rate | 12/2017 | 11/2021 |
|
|
% | |||||||||||||||||||||||||||||||
|
|
Warehouse Facility VIII | Cap Floating Rate | 08/2019 | 08/2023 |
|
|
% | |||||||||||||||||||||||||||||||
| (In millions) |
Amount of Loss
Recognized in Income
on Derivatives
|
|||||||||||||||||||||||||
|
Derivatives Not Designated as
Hedging Instruments |
For the Years Ended December 31, | |||||||||||||||||||||||||
| Location | 2020 | 2019 | 2018 | |||||||||||||||||||||||
| Interest rate caps | Interest expense | $ |
|
$ |
(
|
$ |
(
|
|||||||||||||||||||
| (In millions) | For the Years Ended December 31, | ||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Income before provision for income taxes: | $ |
|
$ |
|
$ |
|
|||||||||||
| Current provision for income taxes: | |||||||||||||||||
| Federal |
|
|
|
||||||||||||||
| State |
|
|
|
||||||||||||||
|
|
|
|
|||||||||||||||
| Deferred provision for income taxes: | |||||||||||||||||
| Federal |
|
|
|
||||||||||||||
| State |
|
|
|
||||||||||||||
|
|
|
|
|||||||||||||||
| Interest and penalties expense: | |||||||||||||||||
| Interest |
(
|
|
|
||||||||||||||
| Penalties |
|
|
|
||||||||||||||
|
(
|
|
|
|||||||||||||||
| Provision for income taxes | $ |
|
$ |
|
$ |
|
|||||||||||
| (In millions) | As of December 31, | ||||||||||
| 2020 | 2019 | ||||||||||
| Deferred tax assets: | |||||||||||
| Allowance for credit losses | $ |
|
$ |
|
|||||||
| Stock-based compensation |
|
|
|||||||||
| Deferred state net operating loss |
|
|
|||||||||
| Other, net |
|
|
|||||||||
| Total deferred tax assets |
|
|
|||||||||
| Deferred tax liabilities: | |||||||||||
| Valuation of Loans receivable |
|
|
|||||||||
| Deferred Loan origination costs |
|
|
|||||||||
| Other, net |
|
|
|||||||||
| Total deferred tax liabilities |
|
|
|||||||||
| Net deferred tax liability | $ |
|
$ |
|
|||||||
| For the Years Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| U.S. federal statutory income tax rate |
|
% |
|
% |
|
% | |||||||||||
| State income taxes |
|
% |
|
% |
|
% | |||||||||||
| Excess tax benefits from stock-based compensation plans |
-
|
% |
-
|
% |
-
|
% | |||||||||||
| Effect of the 2017 Tax Act |
|
% |
|
% |
-
|
% | |||||||||||
| Other |
|
% |
|
% |
|
% | |||||||||||
| Effective income tax rate |
|
% |
|
% |
|
% | |||||||||||
| (In millions) | For the Years Ended December 31, | ||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Unrecognized tax benefits at January 1, | $ |
|
$ |
|
$ |
|
|||||||||||
| Additions for tax positions of the current year |
|
|
|
||||||||||||||
| Additions for tax positions of prior years |
|
|
|
||||||||||||||
| Reductions for tax positions of prior years |
|
|
|
||||||||||||||
| Settlements |
(
|
(
|
|
||||||||||||||
| Reductions as a result of a lapse of the statute of limitations |
(
|
(
|
(
|
||||||||||||||
| Unrecognized tax benefits at December 31, | $ |
|
$ |
|
$ |
|
|||||||||||
| For the Years Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||
| Common shares |
|
|
|
||||||||||||||
| Vested restricted stock units |
|
|
|
||||||||||||||
| Basic number of weighted average shares outstanding |
|
|
|
||||||||||||||
| Dilutive effect of restricted stock and restricted stock units |
|
|
|
||||||||||||||
| Dilutive number of weighted average shares outstanding |
|
|
|
||||||||||||||
| (Dollars in millions) | For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||
| Stock Repurchases | Number of Shares Repurchased | Cost | Number of Shares Repurchased | Cost | Number of Shares Repurchased | Cost | ||||||||||||||||||||||||||||||||
| Open Market (1) |
|
$ |
|
|
$ |
|
|
$ |
|
|||||||||||||||||||||||||||||
| Other (2) |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Total |
|
$ |
|
|
$ |
|
|
$ |
|
|||||||||||||||||||||||||||||
| Restricted Stock | Number of Shares | Weighted Average Grant-Date Fair Value Per Share | ||||||||||||
| Non-vested as of December 31, 2019 |
|
$ |
|
|||||||||||
| Vested |
(
|
|
||||||||||||
| Forfeited |
(
|
|
||||||||||||
| Non-vested as of December 31, 2020 |
|
$ |
|
|||||||||||
| Restricted Stock Units |
Number of Restricted
Stock Units |
Weighted Average Grant-Date Fair Value Per Share |
Aggregate Intrinsic
Value (2) (in millions) |
Weighted Average Remaining Contractual Term (in years) | ||||||||||||||||||||||
| Outstanding as of December 31, 2019 |
|
$ |
|
|||||||||||||||||||||||
| Granted |
|
|
||||||||||||||||||||||||
| Converted |
(
|
|
||||||||||||||||||||||||
| Forfeited |
(
|
|
||||||||||||||||||||||||
| Outstanding as of December 31, 2020 (1) |
|
$ |
|
$ |
|
|
||||||||||||||||||||
| Vested as of December 31, 2020 |
|
$ |
|
$ |
|
|
||||||||||||||||||||
| (In millions) | For the Years Ended December 31, | ||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Restricted stock | $ |
|
$ |
|
$ |
|
|||||||||||
| Restricted stock units |
|
|
|
||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
|||||||||||
| (In millions) | ||||||||||||||||||||
| For the Years Ended December 31, |
Restricted
Stock Units |
Restricted Stock | Total Projected Expense | |||||||||||||||||
| 2021 | $ |
|
$ |
|
$ |
|
||||||||||||||
| 2022 |
|
|
|
|||||||||||||||||
| 2023 |
|
|
|
|||||||||||||||||
| 2024 |
|
|
|
|||||||||||||||||
| 2025 |
|
|
|
|||||||||||||||||
| Thereafter |
|
|
|
|||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
||||||||||||||
| (In millions) | ||||||||
| Year |
Minimum Future
Lease Commitments |
|||||||
| 2021 | $ |
|
||||||
| 2022 |
|
|||||||
| 2023 |
|
|||||||
| 2024 |
|
|||||||
| 2025 |
|
|||||||
| Total | $ |
|
||||||
| (In millions, except per share data) | 2020 | |||||||||||||||||||||||||
| Quarters Ended | ||||||||||||||||||||||||||
| Income Statement Data | March 31 | June 30 | September 30 | December 31 | ||||||||||||||||||||||
| Revenue | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
| Income before provision for income taxes |
(
|
|
|
|
||||||||||||||||||||||
| Net income |
(
|
|
|
|
||||||||||||||||||||||
| Net income per share (1): | ||||||||||||||||||||||||||
| Basic | $ |
(
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
| Diluted | $ |
(
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
| (In millions, except per share data) | 2019 | |||||||||||||||||||||||||
| Quarters Ended | ||||||||||||||||||||||||||
| Income Statement Data | March 31 | June 30 | September 30 | December 31 | ||||||||||||||||||||||
| Revenue | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
| Income before provision for income taxes |
|
|
|
|
||||||||||||||||||||||
| Net income |
|
|
|
|
||||||||||||||||||||||
| Net income per share (1): | ||||||||||||||||||||||||||
| Basic | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
| Diluted | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
| Plan category | Number of shares to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options (a) |
Number of shares
remaining available for future issuance under equity compensation plans (b) |
|||||||||||||||||
|
Equity compensation plan approved by shareholders:
|
||||||||||||||||||||
| Incentive Plan | 412,602 | — | 116,031 | |||||||||||||||||
| (a)(1) | The following consolidated financial statements of the Company and notes thereto and the Report of Independent Registered Public Accounting Firm are contained in Item 8 — Financial Statements and Supplementary Data of this Form 10-K, which is incorporated herein by reference. | ||||
| Report of Independent Registered Public Accounting Firm | |||||
| Consolidated Financial Statements: | |||||
| — Consolidated Balance Sheets as of December 31, 2020 and 2019 | |||||
| — Consolidated Statements of Income for the years ended December 31, 2020, 2019 and 2018 | |||||
| — Consolidated Statements of Comprehensive Income for the years ended December 31, 2020, 2019 and 2018 | |||||
| — Consolidated Statements of Shareholders’ Equity for the years ended December 31, 2020, 2019 and 2018 | |||||
| — Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018 | |||||
| Notes to Consolidated Financial Statements | |||||
| (2) | Financial Statement Schedules have been omitted because they are not applicable or are not required or the information required to be set forth therein is included in the Consolidated Financial Statements or notes thereto. | ||||
| (3) | The exhibits filed in response to Item 601 of Regulation S-K are listed in the Exhibit Index below. | ||||
| Exhibit No. | Description | |||||||
| Articles of Incorporation, as amended July 1, 1997 (incorporated by reference to Exhibit 3(a)(1) to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1997). | ||||||||
| Amended and Restated Bylaws of the Company, as amended July 1, 2020 (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed July 6, 2020). | ||||||||
| Description of the Company's Common Stock. | ||||||||
| Amended and Restated Intercreditor Agreement, dated as of February 1, 2010, among Credit Acceptance Corporation, the other Grantors party thereto, representatives of the Secured Parties thereunder and Comerica Bank, as administrative agent under the Original Credit Agreement (as defined therein) and as collateral agent (incorporated by reference to Exhibit 4(g)(6) to the Company’s Current Report on Form 8-K filed February 5, 2010). | ||||||||
| Amended and Restated Backup Servicing Agreement dated as of December 27, 2012, among the Company, CAC Warehouse Funding Corporation II, Wells Fargo Securities, LLC, and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.82 to the Company’s Current Report on Form 8-K filed January 3, 2013). | ||||||||
| Amended and Restated Sale and Contribution Agreement dated as of April 5, 2013, between the Company and CAC Warehouse Funding LLC IV (incorporated by reference to Exhibit 4.85 to the Company’s Current Report on Form 8-K filed April 5, 2013). | ||||||||
| First Amendment to Amended and Restated Sale and Contribution Agreement, dated as of December 4, 2013, between the Company and CAC Warehouse Funding LLC IV (incorporated by reference to Exhibit 4.107 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013). | ||||||||
| Sixth Amended and Restated Credit Agreement, dated as of June 23, 2014, among the Company, the Banks signatory thereto and Comerica Bank, as agent for the Banks (incorporated by reference to Exhibit 4.124 to the Company’s Current Report on Form 8-K filed June 25, 2014). | ||||||||
| Amendment No. 1 to Amended and Restated Backup Servicing Agreement, dated as of July 18, 2014, among the Company, CAC Warehouse Funding Corporation II, Wells Fargo Securities, LLC, and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.126 to the Company’s Current Report on Form 8-K filed July 23, 2014). | ||||||||
| Loan and Security Agreement, dated as of September 15, 2014, among the Company, CAC Warehouse Funding LLC V, Fifth Third Bank and Systems & Services Technologies, Inc. (incorporated by reference to Exhibit 4.127 to the Company’s Current Report on Form 8-K filed September 18, 2014). | ||||||||
| Backup Servicing Agreement, dated as of September 15, 2014, among the Company, CAC Warehouse Funding LLC V, Fifth Third Bank and Systems & Services Technologies, Inc. (incorporated by reference to Exhibit 4.128 to the Company’s Current Report on Form 8-K filed September 18, 2014). | ||||||||
| Contribution Agreement, dated as of September 15, 2014, between the Company and CAC Warehouse Funding LLC V (incorporated by reference to Exhibit 4.129 to the Company’s Current Report on Form 8-K filed September 18, 2014). | ||||||||
| Indenture dated as of March 30, 2015, among the Company, the Guarantors named therein and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed March 31, 2015). | ||||||||
| First Amendment to the Sixth Amended and Restated Credit Agreement, dated as of June 11, 2015, among the Company, the Banks which are parties thereto from time to time, and Comerica Bank (incorporated by reference to Exhibit 4.74 to the Company’s Current Report on Form 8-K filed June 16, 2015). | ||||||||
| First Amendment to Loan and Security Agreement, dated as of June 11, 2015, among the Company, CAC Warehouse Funding LLC V, Fifth Third Bank, and Systems & Services Technologies, Inc. (incorporated by reference to Exhibit 4.75 to the Company’s Current Report on Form 8-K filed June 16, 2015). | ||||||||
| Loan and Security Agreement dated as of September 30, 2015, among the Company, CAC Warehouse Funding LLC VI, and Flagstar Bank, FSB (incorporated by reference to Exhibit 4.82 to the Company’s Current Report on Form 8-K filed October 5, 2015). | ||||||||
| Contribution Agreement, dated as of September 30, 2015, between the Company and CAC Warehouse Funding LLC VI (incorporated by reference to Exhibit 4.83 to the Company’s Current Report on Form 8-K filed October 5, 2015). | ||||||||
| Second Amendment to the Sixth Amended and Restated Credit Agreement, dated as of June 15, 2016, among the Company, the Banks signatory thereto and Comerica Bank, as agent for the Banks (incorporated by reference to Exhibit 4.76 to the Company’s Current Report on Form 8-K filed June 20, 2016). | ||||||||
| Sixth Amended and Restated Loan and Security Agreement dated as of June 23, 2016, among the Company, CAC Warehouse Funding Corporation II and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.77 to the Company’s Current Report on Form 8-K filed June 28, 2016). | ||||||||
| Fourth Amended and Restated Sale and Contribution Agreement, dated as of June 23, 2016, between the Company and CAC Warehouse Funding Corporation II (incorporated by reference to Exhibit 4.78 to the Company’s Current Report on Form 8-K filed June 28, 2016). | ||||||||
| Second Amendment to Loan and Security Agreement, dated as of August 18, 2016, among the Company, CAC Warehouse Funding LLC V, Fifth Third Bank and Systems & Services Technologies, Inc. (incorporated by reference to Exhibit 4.79 to the Company’s Current Report on Form 8-K filed August 23, 2016). | ||||||||
| First Amendment to Contribution Agreement, dated as of August 18, 2016, between the Company and CAC Warehouse Funding LLC V (incorporated by reference to Exhibit 4.80 to the Company’s Current Report on Form 8-K filed August 23, 2016). | ||||||||
| Third Amendment to Sixth Amended and Restated Credit Agreement and Extension Agreement, dated as of June 28, 2017, among the Company, the Banks signatory thereto and Comerica Bank, as agent for the Banks (incorporated by reference to Exhibit 4.80 to the Company’s Current Report on Form 8-K filed June 30, 2017). | ||||||||
| First Amendment to Loan and Security Agreement, dated as of July 18, 2017, among the Company, CAC Warehouse Funding LLC VI and Flagstar Bank, fsb (incorporated by reference to Exhibit 4.87 to the Company’s Current Report on Form 8-K filed July 21, 2017). | ||||||||
| New Bank Addendum, dated October 19, 2017 to the Sixth Amended and Restated Credit Acceptance Corporation Credit Agreement dated as of October 19, 2017, among the Company, each of the financial institutions parties thereto and Comerica Bank, as agent (incorporated by reference to Exhibit 4.94 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017). | ||||||||
| Assignment Agreement, dated October 19, 2017, among the Company, the Banks signatory thereto and Comerica Bank, as agent, under the Sixth Amended and Restated Credit Acceptance Corporation Credit Agreement dated as of June 23, 2014 (incorporated by reference to Exhibit 4.95 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017). | ||||||||
| Indenture dated as of October 26, 2017, between Credit Acceptance Auto Loan Trust 2017-3 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.88 to the Company’s Current Report on Form 8-K filed October 27, 2017). | ||||||||
| Sale and Servicing Agreement, dated as of October 26, 2017, among the Company, Credit Acceptance Auto Loan Trust 2017-3, Credit Acceptance Funding LLC 2017-3, and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.89 to the Company’s Current Report on Form 8-K filed October 27, 2017). | ||||||||
| Backup Servicing Agreement, dated as of October 26, 2017, among the Company, Credit Acceptance Funding LLC 2017-3, Credit Acceptance Auto Loan Trust 2017-3, and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.90 to the Company’s Current Report on Form 8-K filed October 27, 2017). | ||||||||
| Amended and Restated Trust Agreement, dated as of October 26, 2017, among Credit Acceptance Funding LLC 2017-3, each of the members of the Board of Trustees of the Trust and U.S. Bank Trust National Association (incorporated by reference to Exhibit 4.91 to the Company’s Current Report on Form 8-K filed October 27, 2017). | ||||||||
| Sale and Contribution Agreement, dated as of October 26, 2017, between the Company and Credit Acceptance Funding LLC 2017-3 (incorporated by reference to Exhibit 4.92 to the Company’s Current Report on Form 8-K filed October 27, 2017). | ||||||||
| Loan and Security Agreement, dated as of December 1, 2017, among the Company, CAC Warehouse Funding LLC VII, Credit Suisse AG, New York Branch and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.96 to the Company’s Current Report on Form 8-K filed December 7, 2017). | ||||||||
| Contribution Agreement, dated as of December 1, 2017, between the Company and CAC Warehouse Funding LLC VII (incorporated by reference to Exhibit 4.97 to the Company’s Current Report on Form 8-K filed December 7, 2017). | ||||||||
| Backup Servicing Agreement, dated as of December 1, 2017, among the Company, CAC Warehouse Funding LLC VII, Credit Suisse AG, New York Branch and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.98 to the Company’s Current Report on Form 8-K filed December 7, 2017). | ||||||||
| Amendment No. 1 to Sixth Amended and Restated Loan and Security Agreement, dated as of December 20, 2017, among the Company, CAC Warehouse Funding Corporation II and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.100 to the Company’s Current Report on Form 8-K filed December 21, 2017). | ||||||||
| Indenture dated as of February 22, 2018, between Credit Acceptance Auto Loan Trust 2018-1 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.80 to the Company’s Current Report on Form 8-K filed February 27, 2018). | ||||||||
| Sale and Servicing Agreement, dated as of February 22, 2018, among the Company, Credit Acceptance Auto Loan Trust 2018-1, Credit Acceptance Funding LLC 2018-1 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.81 to the Company’s Current Report on Form 8-K filed February 27, 2018). | ||||||||
| Backup Servicing Agreement, dated as of February 22, 2018, among the Company, Credit Acceptance Funding LLC 2018-1, Credit Acceptance Auto Loan Trust 2018-1 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.82 to the Company’s Current Report on Form 8-K filed February 27, 2018). | ||||||||
| Amended and Restated Trust Agreement, dated as of February 22, 2018, among Credit Acceptance Funding LLC 2018-1, each of the members of the Board of Trustees of the Trust and U.S. Bank Trust National Association (incorporated by reference to Exhibit 4.83 to the Company’s Current Report on Form 8-K filed February 27, 2018). | ||||||||
| Sale and Contribution Agreement, dated as of February 22, 2018, between the Company and Credit Acceptance Funding LLC 2018-1(incorporated by reference to Exhibit 4.84 to the Company’s Current Report on Form 8-K filed February 27, 2018). | ||||||||
| Amended and Restated Loan and Security Agreement dated as of May 10, 2018 among the Company, CAC Warehouse Funding LLC IV, the lenders from time to time party thereto, Bank of Montreal, BMO Capital Markets Corp., and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.86 to the Company’s Current Report on Form 8-K filed May 15, 2018). | ||||||||
| Indenture dated as of May 24, 2018, between Credit Acceptance Auto Loan Trust 2018-2 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.88 to the Company’s Current Report on Form 8-K filed May 30, 2018). | ||||||||
| Sale and Servicing Agreement, dated as of May 24, 2018, among the Company, Credit Acceptance Auto Loan Trust 2018-2, Credit Acceptance Funding LLC 2018-2 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.89 to the Company’s Current Report on Form 8-K filed May 30, 2018). | ||||||||
| Backup Servicing Agreement, dated as of May 24, 2018, among the Company, Credit Acceptance Funding LLC 2018-2, Credit Acceptance Auto Loan Trust 2018-2 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.90 to the Company’s Current Report on Form 8-K filed May 30, 2018). | ||||||||
| Amended and Restated Trust Agreement, dated as of May 24, 2018, among Credit Acceptance Funding LLC 2018-2, each of the members of the Board of Trustees of the Trust and U.S. Bank Trust National Association (incorporated by reference to Exhibit 4.91 to the Company’s Current Report on Form 8-K filed May 30, 2018). | ||||||||
| Sale and Contribution Agreement, dated as of May 24, 2018, between the Company and Credit Acceptance Funding LLC 2018-2 (incorporated by reference to Exhibit 4.92 to the Company’s Current Report on Form 8-K filed May 30, 2018). | ||||||||
| Fourth Amendment to Sixth Amended and Restated Credit Agreement dated as of June 27, 2018 among the Company, the Banks which are parties thereto from time to time, and Comerica Bank as Administrative Agent and Collateral Agent for the Banks (incorporated by reference to Exhibit 4.94 to the Company’s Current Report on Form 8-K filed June 28, 2018). | ||||||||
| Third Amendment to Loan and Security Agreement, dated as of August 15, 2018, among the Company, CAC Warehouse Funding LLC V, Fifth Third Bank and Systems & Services Technologies, Inc. (incorporated by reference to Exhibit 4.95 to the Company’s Current Report on Form 8-K filed August 17, 2018). | ||||||||
| Indenture dated as of August 23, 2018, between Credit Acceptance Auto Loan Trust 2018-3 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.96 to the Company’s Current Report on Form 8-K filed August 29, 2018). | ||||||||
| Sale and Servicing Agreement, dated as of August 23, 2018, among the Company, Credit Acceptance Auto Loan Trust 2018-3, Credit Acceptance Funding LLC 2018-3 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.97 to the Company’s Current Report on Form 8-K filed August 29, 2018). | ||||||||
| Backup Servicing Agreement, dated as of August 23, 2018, among the Company, Credit Acceptance Funding LLC 2018-3, Credit Acceptance Auto Loan Trust 2018-3 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.98 to the Company’s Current Report on Form 8-K filed August 29, 2018). | ||||||||
| Amended and Restated Trust Agreement, dated as of August 23, 2018, among Credit Acceptance Funding LLC 2018-3, each of the members of the Board of Trustees of the Trust and U.S. Bank Trust National Association (incorporated by reference to Exhibit 4.99 to the Company’s Current Report on Form 8-K filed August 29, 2018). | ||||||||
| Sale and Contribution Agreement, dated as of August 23, 2018, between the Company and Credit Acceptance Funding LLC 2018-3 (incorporated by reference to Exhibit 4.100 to the Company’s Current Report on Form 8-K filed August 29, 2018). | ||||||||
| First Amendment to Loan and Security Agreement, dated as of December 17, 2018, among the Company, CAC Warehouse Funding LLC VII, the lenders and managing agents from time to time party thereto, Credit Suisse AG, New York Branch and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.102 to the Company’s Current Report on Form 8-K filed December 19, 2018). | ||||||||
| Indenture dated as of February 21, 2019, between Credit Acceptance Auto Loan Trust 2019-1 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.93 to the Company’s Current Report on Form 8-K filed February 26, 2019). | ||||||||
| Sale and Servicing Agreement, dated as of February 21, 2019, among the Company, Credit Acceptance Auto Loan Trust 2019-1, Credit Acceptance Funding LLC 2019-1 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.94 to the Company’s Current Report on Form 8-K filed February 26, 2019). | ||||||||
| Backup Servicing Agreement, dated as of February 21, 2019, among the Company, Credit Acceptance Funding LLC 2019-1, Credit Acceptance Auto Loan Trust 2019-1 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.95 to the Company’s Current Report on Form 8-K filed February 26, 2019). | ||||||||
| Amended and Restated Trust Agreement, dated as of February 21, 2019, among Credit Acceptance Funding LLC 2019-1, each of the initial members of the Board of Trustees of the Trust and U.S. Bank Trust National Association (incorporated by reference to Exhibit 4.96 to the Company’s Current Report on Form 8-K filed February 26, 2019). | ||||||||
| Sale and Contribution Agreement, dated as of February 21, 2019, between the Company and Credit Acceptance Funding LLC 2019-1 (incorporated by reference to Exhibit 4.97 to the Company’s Current Report on Form 8-K filed February 26, 2019). | ||||||||
| Indenture, dated as of March 7, 2019, among Credit Acceptance Corporation, the Guarantors named therein and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.99 to the Company’s Current Report on Form 8-K filed March 8, 2019). | ||||||||
| Registration Rights Agreement, dated March 7, 2019, among Credit Acceptance Corporation, Buyers Vehicle Protection Plan, Inc., Vehicle Remarketing Services, Inc. and the representative of the initial purchasers of Credit Acceptance Corporation’s 6.625% Senior Notes due 2026 (incorporated by reference to Exhibit 4.100 to the Company’s Current Report on Form 8-K filed March 8, 2019). | ||||||||
| Fifth Amendment to Sixth Amended and Restated Credit Agreement, dated as of June 24, 2019, among the Company, Comerica Bank and the other banks signatory thereto and Comerica Bank, as administrative agent for the banks (incorporated by reference to Exhibit 4.101 to the Company’s Current Report on Form 8-K filed June 26, 2019). | ||||||||
| Amendment No. 2 to the Sixth Amended and Restated Loan and Security Agreement, dated as of July 12, 2019, by and among the Company, CAC Warehouse Funding Corporation II, the lenders from time to time party thereto and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.102 to the Company’s Current Report on Form 8-K filed July 15, 2019). | ||||||||
|
Fourth Amendment to Loan Security Agreement, dated as of July 16, 2019, among the Company, CAC
Warehouse Funding LLC V and Fifth Third Bank (incorporated by reference to Exhibit 4.103 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019). |
||||||||
| Second Amendment to Loan and Security Agreement, dated as of July 18, 2019, among the Company, CAC Warehouse Funding LLC VII, the lenders and managing agents from time to time party thereto, Credit Suisse International and Credit Suisse AG, New York Branch (incorporated by reference to Exhibit 4.104 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019). | ||||||||
| Second Amendment to Loan and Security Agreement, dated as of July 25, 2019, among the Company, CAC Warehouse Funding LLC VI and Flagstar Bank, FSB (incorporated by reference to Exhibit 4.105 to the Company’s Current Report on Form 8-K filed July 26, 2019). | ||||||||
| Loan and Security Agreement, dated as of July 26, 2019, among the Company, CAC Warehouse Funding LLC VIII, the lenders from time to time party thereto, Citizens Bank N.A. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.106 to the Company’s Current Report on Form 8-K filed July 29, 2019). | ||||||||
| Sale and Contribution Agreement, dated as of July 26, 2019, between the Company and CAC Warehouse Funding LLC VIII (incorporated by reference to Exhibit 4.107 to the Company’s Current Report on Form 8-K filed July 29, 2019). | ||||||||
| Backup Servicing Agreement, dated as of July 26, 2019, among the Company, CAC Warehouse Funding LLC VIII, Citizens Bank, N.A. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.108 to the Company’s Current Report on Form 8-K filed July 29, 2019). | ||||||||
| First Amendment to Amended and Restated Loan and Security Agreement, dated as of July 26, 2019, among the Company, CAC Warehouse Funding LLC IV, Bank of Montreal, Citizens Bank, N.A., BMO Capital Markets Corp. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.110 to the Company’s Current Report on Form 8-K filed July 29, 2019). | ||||||||
| Amended and Restated Backup Servicing Agreement, dated as of July 26, 2019, among the Company, CAC Warehouse Funding LLC IV, Bank of Montreal, BMO Capital Markets Corp. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.111 to the Company’s Current Report on Form 8-K filed July 29, 2019). | ||||||||
| Loan and Security Agreement, dated as of August 28, 2019, among the Company, Credit Acceptance Funding LLC 2019-2 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.112 to the Company’s Current Report on Form 8-K filed September 4, 2019). | ||||||||
| Backup Servicing Agreement, dated as of August 28, 2019, among the Company, Credit Acceptance Funding LLC 2019-2 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.113 to the Company’s Current Report on Form 8-K filed September 4, 2019). | ||||||||
| Sale and Contribution Agreement, dated as of August 28, 2019, between the Company and Credit Acceptance Funding LLC 2019-2 (incorporated by reference to Exhibit 4.114 to the Company’s Current Report on Form 8-K filed September 4, 2019). | ||||||||
| Amendment No. 3 to the Sixth Amended and Restated Loan and Security Agreement, dated as of August 16, 2019, among the Company, CAC Warehouse Funding Corporation II, the lenders from time to time party thereto and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.116 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019). | ||||||||
| Second Amended and Restated Backup Servicing Agreement, dated as of August 16, 2019, among the Company, CAC Warehouse Funding Corporation II and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.117 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019). | ||||||||
| Indenture dated as of November 21, 2019, between Credit Acceptance Auto Loan Trust 2019-3 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.118 to the Company’s Current Report on Form 8-K filed November 26, 2019). | ||||||||
| Sale and Servicing Agreement, dated as of November 21, 2019, among the Company, Credit Acceptance Auto Loan Trust 2019-3, Credit Acceptance Funding LLC 2019-3 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.119 to the Company’s Current Report on Form 8-K filed November 26, 2019). | ||||||||
| Backup Servicing Agreement, dated as of November 21, 2019, among the Company, Credit Acceptance Funding LLC 2019-3, Credit Acceptance Auto Loan Trust 2019-3 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.120 to the Company’s Current Report on Form 8-K filed November 26, 2019). | ||||||||
| Amended and Restated Trust Agreement, dated as of November 21, 2019, among Credit Acceptance Funding LLC 2019-3 and U.S. Bank Trust National Association (incorporated by reference to Exhibit 4.121 to the Company’s Current Report on Form 8-K filed November 26, 2019). | ||||||||
| Sale and Contribution Agreement, dated as of November 21, 2019, between the Company and Credit Acceptance Funding LLC 2019-3 (incorporated by reference to Exhibit 4.122 to the Company’s Current Report on Form 8-K filed November 26, 2019). | ||||||||
| Indenture, dated as of December 18, 2019, among the Company, the Guarantors named therein and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.124 to the Company’s Current Report on Form 8-K filed December 18, 2019). | ||||||||
| Third Amendment to Loan and Security Agreement, dated as of December 19, 2019, among the Company, CAC Warehouse Funding LLC VII, Credit Suisse AG, New York Branch and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.125 to the Company’s Current Report on Form 8-K filed December 19, 2019). | ||||||||
| Indenture, dated as of February 20, 2020, between Credit Acceptance Auto Loan Trust 2020-1 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.107 to the Company’s Current Report on Form 8-K filed February 24, 2020). | ||||||||
| Sale and Servicing Agreement, dated as of February 20, 2020, among the Company, Credit Acceptance Auto Loan Trust 2020-1, Credit Acceptance Funding LLC 2020-1 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.108 to the Company’s Current Report on Form 8-K filed February 24, 2020). | ||||||||
| Backup Servicing Agreement, dated as of February 20, 2020, among the Company, Credit Acceptance Funding LLC 2020-1, Credit Acceptance Auto Loan Trust 2020-1 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.109 to the Company’s Current Report on Form 8-K filed February 24, 2020). | ||||||||
| Amended and Restated Trust Agreement, dated as of February 20, 2020, among Credit Acceptance Funding LLC 2020-1, each of the initial members of the Board of Trustees of the Trust and U.S. Bank Trust National Association (incorporated by reference to Exhibit 4.110 to the Company’s Current Report on Form 8-K filed February 24, 2020). | ||||||||
| Sale and Contribution Agreement, dated as of February 20, 2020, between the Company and Credit Acceptance Funding LLC 2020-1 (incorporated by reference to Exhibit 4.111 to the Company’s Current Report on Form 8-K filed February 24, 2020). | ||||||||
| Sixth Amendment to Sixth Amended and Restated Credit Agreement, dated as of June 30, 2020, by and among the Company, Comerica Bank and the other banks signatory thereto and Comerica Bank, as administrative agent for the banks (incorporated by reference to Exhibit 4.115 to the Company’s Current Report on Form 8-K filed July 1, 2020). | ||||||||
| Amendment No. 4 to the Sixth Amended and Restated Loan and Security Agreement, dated as of June 25, 2020, among the Company, CAC Warehouse Funding Corporation II, the lenders from time to time party thereto and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.113 to the Company’s Current Report on Form 8-K filed July 1, 2020). | ||||||||
| Fourth Amendment to Loan and Security Agreement, dated as of June 26, 2020, among the Company, CAC Warehouse Funding LLC VII, the lenders and managing agents from time to time party thereto and Credit Suisse AG, New York Branch (incorporated by reference to Exhibit 4.114 to the Company’s Current Report on Form 8-K filed July 1, 2020). | ||||||||
| Indenture, dated as of July 23, 2020, between Credit Acceptance Auto Loan Trust 2020-2 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.116 to the Company’s Current Report on Form 8-K filed July 28, 2020). | ||||||||
| Sale and Servicing Agreement, dated as of July 23, 2020, among the Company, Credit Acceptance Auto Loan Trust 2020-2, Credit Acceptance Funding LLC 2020-2 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.117 to the Company’s Current Report on Form 8-K filed July 28, 2020). | ||||||||
| Backup Servicing Agreement, dated as of July 23, 2020, among the Company, Credit Acceptance Funding LLC 2020-2, Credit Acceptance Auto Loan Trust 2020-2 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.118 to the Company’s Current Report on Form 8-K filed July 28, 2020). | ||||||||
| Amended and Restated Trust Agreement, dated as of July 23, 2020, among Credit Acceptance Funding LLC 2020-2, each of the members of the Board of Trustees of the Trust and U.S. Bank Trust National Association (incorporated by reference to Exhibit 4.119 to the Company’s Current Report on Form 8-K filed July 28, 2020). | ||||||||
| Sale and Contribution Agreement, dated as of July 23, 2020, between the Company and Credit Acceptance Funding LLC 2020-2 (incorporated by reference to Exhibit 4.120 to the Company’s Current Report on Form 8-K filed July 28, 2020). | ||||||||
| Indenture, dated as of October 22, 2020, between Credit Acceptance Auto Loan Trust 2020-3 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.122 to the Company’s Current Report on Form 8-K filed October 27, 2020). | ||||||||
| Sale and Servicing Agreement, dated as of October 22, 2020, among the Company, Credit Acceptance Auto Loan Trust 2020-3, Credit Acceptance Funding LLC 2020-3 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.123 to the Company’s Current Report on Form 8-K filed October 27, 2020). | ||||||||
| Backup Servicing Agreement, dated as of October 22, 2020, among the Company, Credit Acceptance Funding LLC 2020-3, Credit Acceptance Auto Loan Trust 2020-3 and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.124 to the Company’s Current Report on Form 8-K filed October 27, 2020). | ||||||||
| Amended and Restated Trust Agreement, dated as of October 22, 2020, among Credit Acceptance Funding LLC 2020-3, each of the members of the Board of Trustees of the Trust and U.S. Bank Trust National Association (incorporated by reference to Exhibit 4.125 to the Company’s Current Report on Form 8-K filed October 27, 2020). | ||||||||
| Sale and Contribution Agreement, dated as of October 22, 2020, between the Company and Credit Acceptance Funding LLC 2020-3 (incorporated by reference to Exhibit 4.126 to the Company’s Current Report on Form 8-K filed October 27, 2020). | ||||||||
| Amended and Restated Intercreditor Agreement, dated October 22, 2020, among the Company, CAC Warehouse Funding Corporation II, CAC Warehouse Funding LLC IV, CAC Warehouse Funding LLC V, CAC Warehouse Funding LLC VI, CAC Warehouse Funding LLC VII, CAC Warehouse Funding LLC VIII, Credit Acceptance Funding LLC 2020-3, Credit Acceptance Funding LLC 2020-2, Credit Acceptance Funding LLC 2020-1, Credit Acceptance Funding LLC 2019-3, Credit Acceptance Funding LLC 2019-2, Credit Acceptance Funding LLC 2019-1, Credit Acceptance Funding LLC 2018-3, Credit Acceptance Funding LLC 2018-2, Credit Acceptance Funding LLC 2018-1, Credit Acceptance Funding LLC 2017-3, Credit Acceptance Funding LLC 2017-2, Credit Acceptance Auto Loan Trust 2020-3, Credit Acceptance Auto Loan Trust 2020-2, Credit Acceptance Auto Loan Trust 2020-1, Credit Acceptance Auto Loan Trust 2019-3, Credit Acceptance Auto Loan Trust 2019-1, Credit Acceptance Auto Loan Trust 2018-3, Credit Acceptance Auto Loan Trust 2018-2, Credit Acceptance Auto Loan Trust 2018-1, Credit Acceptance Auto Loan Trust 2017-3, Credit Acceptance Auto Loan Trust 2017-2, Wells Fargo Bank, National Association, as agent, Fifth Third Bank, National Association as agent, Bank of Montreal, as agent, Flagstar Bank, FSB, as agent, Citizens Bank, N.A., as agent, and Comerica Bank, as agent (incorporated by reference to Exhibit 4.127 to the Company’s Current Report on Form 8-K filed October 27, 2020). | ||||||||
| Fifth Amendment to Loan and Security Agreement, dated as of December 16, 2020 among the Company, CAC Warehouse Funding LLC V, and Fifth Third Bank, National Association (incorporated by reference to Exhibit 4.129 to the Company’s Current Report on Form 8-K filed December 18, 2020). | ||||||||
| Seventh Amendment to Sixth Amended and Restated Credit Agreement and Extension Agreement, dated as of December 15, 2020, by and among the Company, Comerica Bank and the other banks signatory thereto and Comerica Bank, as administrative agent for the banks (incorporated by reference to Exhibit 4.128 to the Company’s Current Report on Form 8-K filed December 18, 2020). | ||||||||
| Form of Restricted Stock Grant Agreement (incorporated by reference to Exhibit 10(q)(4) to the Company’s Current Report on Form 8-K filed February 28, 2007).* | ||||||||
| Credit Acceptance Corporation Amended and Restated Incentive Compensation Plan, as amended, April 6, 2009 (incorporated by reference to Annex A to the Company’s Definitive Proxy Statement on Schedule 14A filed April 10, 2009).* | ||||||||
| Form of Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10(q)(11) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2009).* | ||||||||
| Form of Board of Directors Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10(q)(12) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2009).* | ||||||||
| Restricted Stock Unit Award Agreement, dated March 26, 2012, between the Company and Brett A. Roberts (incorporated by reference to Exhibit 10.16 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012).* | ||||||||
| Restricted Stock Award Agreement, dated March 26, 2012, between the Company and Brett A. Roberts (incorporated by reference to Exhibit 10.17 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012).* | ||||||||
| Credit Acceptance Corporation Amended and Restated Incentive Compensation Plan, as amended, March 26, 2012 (incorporated by reference to Annex A to the Company’s Definitive Proxy Statement on Schedule 14A filed April 5, 2012).* | ||||||||
| Form of Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.19 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013).* | ||||||||
| Shareholder Agreement, dated as of January 3, 2017, between the Company and Donald A. Foss (incorporated by reference to Exhibit 10.18 to the Company’s Current Report on Form 8-K filed January 4, 2017).* | ||||||||
| Form of Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.19 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017).* | ||||||||
| Amendment to Shareholder Agreement dated September 15, 2017, between the Company and Donald A. Foss (incorporated by reference to Exhibit 10.19 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017).* | ||||||||
| Amendment to Shareholder Agreement dated November 29, 2017, between the Company and Donald A. Foss.* | ||||||||
| Form of Director Restricted Stock Unit Agreement (incorporated by reference to Exhibit 10.13 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019).* | ||||||||
| Form of Nonqualified Stock Option Agreement.* | ||||||||
| Schedule of Credit Acceptance Corporation Subsidiaries. | ||||||||
| Consent of Grant Thornton LLP. | ||||||||
| Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act. | ||||||||
| Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act. | ||||||||
| Certification of Chief Executive Officer, Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
| Certification of Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
| 101(SCH) | Inline XBRL Taxonomy Extension Schema Document. | |||||||
| 101(CAL) | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
| 101(DEF) | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
| 101(LAB) | Inline XBRL Taxonomy Label Linkbase Document. | |||||||
| 101(PRE) | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
| 104 | Cover Page Interactive Data File (included in Exhibit 101). | |||||||
| * | Management contract or compensatory plan or arrangement. | |||||||
| CREDIT ACCEPTANCE CORPORATION | |||||||||||
| By: | /s/ BRETT A. ROBERTS | ||||||||||
| Brett A. Roberts | |||||||||||
| Chief Executive Officer | |||||||||||
| Date: | February 12, 2021 | ||||||||||
| Signature | Title | |||||||
| /s/ BRETT A. ROBERTS | Chief Executive Officer and Director | |||||||
| Brett A. Roberts | (Principal Executive Officer) | |||||||
| /s/ KENNETH S. BOOTH | Chief Financial Officer | |||||||
| Kenneth S. Booth | (Principal Financial Officer and Principal Accounting Officer) | |||||||
| /s/ THOMAS N. TRYFOROS | Lead Director | |||||||
| Thomas N. Tryforos | ||||||||
| /s/ GLENDA J. FLANAGAN | Director | |||||||
| Glenda J. Flanagan | ||||||||
| /s/ SCOTT J. VASSALLUZZO | Director | |||||||
| Scott J. Vassalluzzo | ||||||||